The Small & Medium Business Administration (SMBA) and the Korea Venture Investment Corporation (KVIC) announced on July 27 that the cumulative funding amount of the Foreign VC Investment Fund recently topped one trillion won (US$869.5). The Foreign VC Investment Fund, established in 2013, is run by foreign venture capitals on condition that a certain portion of the fund is invested in South Korean startups.
Until last year, approximately 930 billion won (US$808.6 million) were raised based on investment in 11 foreign venture capitals. The amount increased to 1.0374 trillion won (US$872.8 million) in the first half of this year with the number of the participating foreign venture capitals increasing by four.
Their funds have attracted a foreign investment of 551.2 billion won ((US$479.3 million) equivalent to 440% of the contract amount of the fund of funds, and have invested 162.3 billion won (US$141.1 million) in 79 small and medium-sized firms and venture firms in South Korea. The investment is likely to be accelerated down the road in that most of the funds were raised as recently as last year.
The Foreign VC Investment Fund is currently acting as a reliable partner for startups’ and venture firms’ overseas business expansion, investment attraction and networking. The SMBA is planning to keep increasing its investment in the foreign venture capitals taking part in the fund.