Venture Investments Surpass 3.3 Trillion Won in Q1, Driven by AI and Semiconductors

Ministry of SMEs and Startups in Sejong [Photo by Yoo Dae-gil, dbeorlf123@ajunews.com]

According to the Ministry of SMEs and Startups, new venture investments in the first quarter of this year reached 3.3 trillion won, marking the second-highest level on record.

On May 17, the ministry reported that this figure represents a 24.1% increase compared to the same period last year. This follows a period of significant venture investment activity in 2022.

The amount raised by new venture funds also hit a record high of 4.4 trillion won, up 30.7% from the previous year. By type of investor, policy finance increased by 82.0%, while private sector contributions rose by 19.8%.

The top three sectors for venture investment in the first quarter of 2026 were 'ICT Services' (21.4%), 'Bio & Medical' (20.5%), and 'Electrical, Machinery & Equipment' (15.3%). The 'ICT Services' sector has consistently attracted the largest share of venture investments in the first quarter over the past five years, largely due to increased funding in artificial intelligence (AI) related fields. Notably, venture investments in the 'ICT Manufacturing' sector saw a staggering 99.5% increase compared to the previous year, driven by significant investments in AI semiconductor technology.

Investments in the 'Bio & Medical' sector also surged, increasing by 85.5% (3.139 trillion won) year-on-year. This growth is attributed to large-scale investments in bio and medical companies, with eight firms attracting over 10 billion won in large investments, including instances of funding exceeding 100 billion won.

The ministry attributed this venture boom to the catalytic role of the Fund of Funds. Over the past 20 years, 87% of the unicorn companies that emerged in South Korea have received support from the Fund of Funds.

Since its inception in 2005, the cumulative total of venture investments in South Korea has reached 65.6 trillion won, with the Fund of Funds accounting for 37.2 trillion won, or 56.7% of the total market. The ministry has set a target of 2.6 trillion won for the Fund of Funds this year.

Han Seong-sook, Minister of SMEs and Startups, stated, "Following the record second-highest venture investment performance in 2025, the significant increase in both venture investment and funds in the first quarter of 2026 is a very positive signal. The ministry will continue to promote the expansion of Fund of Funds investments and improve systems to incentivize private investment, ensuring that promising small and venture companies can grow into unicorns."

* This article has been translated by AI.