The Ministry of SMEs and Startups (Minister Han Sung-sook) announced that new venture investment in the first three quarters of this year reached 9.8 trillion won, a 13.1% increase year-on-year. Investment in the third quarter alone reached 4 trillion won, surpassing the 4 trillion won mark for the first time since the pandemic began. This represents a 32% increase compared to the second quarter and a 28% increase compared to the same period last year.
Investments increased by more than 13% for both early-stage and late-stage companies within seven years of establishment, with funding flowing evenly across all growth stages. The average investment per company reached KRW 3.1 billion, a 24% increase from the previous year. This is interpreted as a result of increased large-scale investments and improved investment efficiency.
Venture fund formation also rebounded for the first time since 2022, rising 17.3% year-on-year to KRW 9.7 trillion. This marks a reversal of the fund market's decline. Private capital accounted for 83% of the total, driving the expansion. In particular, contributions from pension funds and mutual aid associations reached a record KRW 837 billion. While the number of funds decreased slightly, the formation of large funds is leading to qualitative growth in the market.
A notable change is the increased activity of large-scale investments outside the metropolitan area. An analysis of the performance of venture capital firms and investment funds revealed that a total of 13 non-metropolitan companies attracted over 10 billion won in investment. These companies include five in the bio sector, including Cellac Bio, Trior, and Sobagen, and five in the electrical, mechanical, and equipment sectors, including Lion Robotics and Nexen. These companies are recognized for their technological prowess and growth potential, contributing to the strengthening of the local industrial base.
Meanwhile, the global robotics market continues to grow at an average annual rate of 20% (Statista, 2025) driven by the spread of artificial intelligence (AI) and autonomous driving technologies, and the bio industry is also booming, centered on the development of new drugs and advancements in healthcare technology.
Minister of SMEs and Startups Han Seong-sook stated, "The double-digit increase in both venture investment and fund formation is a significant achievement." She added, "In particular, we need to further strengthen regional investment to foster the growth of non-metropolitan industries such as bio and robotics." She added, "The Ministry of SMEs and Startups will develop a 'plan to become one of the top four venture powerhouses' within this year and pursue the creation of a venture investment market worth 40 trillion won."
These results demonstrate that the domestic venture ecosystem, which had been shrinking since 2022, is regaining its momentum. With the influx of private-sector capital increasing and technology-based companies growing evenly across the country, the Korean venture investment market is undergoing a quantitative and qualitative restructuring.
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