In the first quarter of this year, new venture investments reached 3.3 trillion won, marking the second-highest level on record, according to data released by the Ministry of SMEs and Startups on May 17.
The report indicates that the new venture investments increased by 24.1% compared to the same period last year, following a boom in venture capital in 2022.
The total amount raised by new venture funds also saw a significant rise, reaching 4.4 trillion won, a 30.7% increase year-on-year, setting a new record. Of this, policy financing accounted for 82.0%, while private sector contributions increased by 19.8%.
The top three sectors for venture investments in Q1 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, driven by increased funding in artificial intelligence (AI) related fields. Notably, venture investments in the 'ICT Manufacturing' sector surged by 99.5% compared to the previous year, primarily due to significant investments in AI semiconductor technologies.
Investments in the 'Bio & Medical' sector also rose sharply, increasing by 85.5% (3.139 trillion won) from the previous year, reflecting a trend of large-scale investments in bio and medical companies. Eight companies secured investments exceeding 10 billion won, with some receiving over 100 billion won.
The Ministry attributes 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 received support from the Fund of Funds.
Since the Fund of Funds was launched in 2005, it has contributed 37.2 trillion won of the total 65.6 trillion won in cumulative venture investments in the country, accounting for 56.7% of the overall market. The Ministry has set a target of 2.6 trillion won for the Fund of Funds this year.
Minister Han Seong-sook stated, "Following the record second-highest venture investment performance in 2025, the significant increases in both venture investments and funds in the first quarter of 2026 are very positive signals. The Ministry will continue to promote the expansion of Fund of Funds investments and improve regulations to incentivize private investments, ensuring that promising small and venture companies can grow into unicorns."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.