In the first half of 2026, domestic venture investments approached 8.9 trillion won, marking the highest level ever recorded for this period. Analysts attribute this surge to significant investments in deep tech sectors such as artificial intelligence (AI), semiconductors, and robotics, indicating a robust recovery in the venture investment market.
The Ministry of SMEs and Startups announced these findings on August 19, detailing the trends in new venture investments and fund formations for the first half of 2026.
From January to June, new venture investments totaled 8.8676 trillion won, a 54.3% increase compared to the same period last year. This figure also exceeds the levels seen during the venture investment boom in the first half of 2022, setting a new record. The amount raised for new venture funds also rose by 33.0% to 8.4366 trillion won, the second-highest figure for any first half.
By type of investor, policy finance grew by 58.3%, while the private sector increased by 28.1%. In the private sector, contributions from financial institutions surged by 54.9% to 2.6061 trillion won, driving the growth.
In terms of industry, investments in information and communication technology (ICT) services accounted for 1.86 trillion won, or 21.0% of the total, reflecting an expansion in AI-related technologies. This was followed by investments in electrical, mechanical, and equipment sectors at 1.5359 trillion won (17.3%) and in the bio and medical sectors at 1.5041 trillion won (17.0%).
Compared to the first half of last year, investments in ICT manufacturing increased by 143.3%, while investments in electrical, mechanical, and equipment sectors and ICT services rose by 90.4% and 62.2%, respectively. Large investments exceeding 1 billion won in the semiconductor and robotics sectors, including AI semiconductors, memory chips, and humanoids, have significantly contributed to the overall investment performance.
Investments increased across both new and established companies, with both those under seven years and those over seven years seeing growth in investment amounts and the number of companies funded. Notably, investments in early-stage companies within three years of establishment rose by 56.4%, driven by deep tech startups in AI, semiconductors, and robotics securing investments of over 100 million won.
Regionally, venture investments in the capital area reached 3.0972 trillion won, a 49.9% increase from the first half of last year, while non-capital areas saw investments of 1.0647 trillion won, up 104.7%. Daejeon recorded the largest investment in non-capital regions at 435.9 billion won, bolstered by significant investments in key new industries such as life sciences and aerospace.
Kim Bong-deok, the venture policy director at the Ministry of SMEs and Startups, stated, "The substantial increase in both venture investments and fund formations in the first half of this year indicates that the domestic venture investment market has entered a phase of significant growth." He added, "We will strengthen the role of the mother fund as a catalyst for venture capital expansion, ensuring that policy support, including tax incentives, is implemented effectively in collaboration with relevant ministries to promote job creation for youth and invigorate the local economy."
* This article has been translated by AI.
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