The Ministry of SMEs and Startups held the '2026 Mother Fund Investment Strategy Committee' on the 20th, chaired by Minister Han Seong-sook, to review the performance of the 2025 Mother Fund operation and discuss the 2026 investment plan and future development direction.
The Mother Fund Investment Strategy Committee, a public-private consultative body launched in 2024 to ensure market-friendly operations of the Mother Fund, discusses investment directions prior to the announcement of investment proposals and incorporates the results into the following year's budget formulation process. Representatives from the Korea Venture Business Association, the Korea Venture Capital Association, and the Korea Financial Investment Association, as well as experts in AI, bio, and globalization, attended the meeting.
According to the Ministry of SMEs and Startups, by 2025, the Mother Fund had invested a total of KRW 1.3 trillion, creating a KRW 3.3 trillion venture fund. Among the companies invested by the fund, three—Furiosa AI, Benow, and Galaxy Corporation—grew into unicorns. Furthermore, 74% of KOSDAQ-listed companies in 2025 were invested by Mother Funds.
The average annual return for the mother fund, liquidated by 2025, was calculated to be 7.5%. Excluding funds with relatively low returns, such as those in the culture, film, and angel sectors, the return was 9.3%, while local sector funds recorded a return of 9.7%.
Building on these achievements, the Ministry of SMEs and Startups plans to expand the size of its mother fund to KRW 1.6 trillion by 2026 and strengthen investment at each stage of growth, focusing on AI and deep tech. The ministry plans to encourage participation from private sector funds, such as pension funds and retirement pensions, as well as global investors, and continue investing in regional, early-stage startups, re-challenge businesses, and youth-focused sectors.
Furthermore, we will introduce a mandatory regional investment ratio for general mother fund investment projects, expand preferential management fees based on initial investment performance, and extend special recognition for share purchases. Regional growth funds will expand to all regions outside the metropolitan area, with the goal of raising at least KRW 2 trillion in mother funds and KRW 3.5 trillion in equity funds over the next five years.
The Ministry of SMEs and Startups is considering introducing a disclosure system and establishing a steering committee comprised of experts from various ministries and the private sector to enhance the transparency and efficiency of the mother fund.
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