Minister Han Sung-sook of the Ministry of SMEs and Startups speaks during a press conference marking her 100th day in office at Tipstown S1 in Seoul’s Gangnam District on November 5. (Photo provided by the Ministry of SMEs and Startups)
SEOUL, Nov. 14 (Korea Bizwire) — South Korea’s venture investment market showed clear signs of recovery this year, with both venture investments and fund formation rising by double digits through the third quarter, government data showed Thursday.
According to the Ministry of SMEs and Startups, total venture investment reached 9.8 trillion won (US$7.1 billion) between January and September, up 13.1 percent from the same period a year earlier.
In the third quarter alone, investments surged 28 percent year-on-year to 4 trillion won, the highest single-quarter total since the COVID-19 pandemic and the first time quarterly investment has surpassed that threshold.
Venture fund formation — the stage in which capital is raised for future investments — also rebounded for the first time since 2022, climbing 17.3 percent on-year to 9.7 trillion won.
Private investors accounted for 83 percent of all new funds, leading the overall growth, while contributions from pension funds and mutual aid associations hit a record 837 billion won.
Investment expanded across all stages of business growth, with early- and late-stage startups each recording a 13.1 percent increase.
Regional startups outside the Seoul metropolitan area also saw greater inflows, with 13 companies attracting more than 10 billion won in investments during the first nine months of the year.
Industry Minister Han Sung-sook called the rebound “a significant milestone” and vowed to finalize plans by year’s end to build a 40 trillion won venture investment ecosystem as part of Korea’s goal to become one of the world’s top four venture powerhouses.
Ashley Song (ashley@koreabizwire.com)
