The Ministry of SMEs and Startups (Minister Oh Young-joo, hereinafter referred to as the Ministry of SMEs and Startups) announced the domestic venture investment and fund formation trends for 2024 on the 13th.
The venture investment volume in 2024 is estimated to be 11.9 trillion won. This is a 47.5% increase compared to before COVID-19 (2020) and a 9.5% increase compared to the previous year, showing that it has successfully rebounded for the first time since the declining trend in 2021 and is continuing its mid- to long-term growth trend.
Meanwhile, global venture investment decreased by 17.1% compared to 2020 and decreased by 0.1% compared to the previous year, showing that the Korean venture investment market is showing a clear recovery compared to the global market.
Looking at the quarterly venture investment performance, the venture investment scale in the fourth quarter increased by 5% compared to the third quarter (KRW 2.0 trillion in the first quarter → KRW 3.5 trillion in the second quarter → KRW 3.2 trillion in the third quarter → KRW 3.3 trillion in the fourth quarter), showing a good trend, 10% higher than the quarterly average of KRW 3.0 trillion over the past five years ('20-'24).
In terms of investment by industry, as interest in artificial intelligence (AI) grew, investment in ‘ICT services’ increased by 38% year-on-year, while investment in ‘video, performance, and music’ decreased by 23.7%.
The fund formation amount in 2024 is expected to be KRW 10.6 trillion, a 5.7% increase from 2020, while the global venture fund formation size is expected to decrease by 52.6%, indicating that the formation of venture funds in Korea is continuing a relatively solid trend compared to the global venture fund formation trend.
The government is making various policy efforts, such as announcing the entire 2025 SME Mother Fund investment budget (KRW 1 trillion) in January to provide early relief so that the domestic venture investment market can further accelerate its current recovery, and drastically expanding the scale of fund investment in policy areas such as startups and local governments.
Minister Oh Young-joo said, “The scale of venture investment in our country in 2024 will continue to grow steadily even in difficult global market conditions,” and added, “We will faithfully implement the ‘Advanced Venture Investment Market Leap Forward Plan’ announced last October, and continuously strive to create a world-class venture investment ecosystem by reflecting voices from the field and easing regulations.”
- See more related articles
You must be logged in to post a comment.