Korea has moved from blueprint to execution in its 2026 enterprise capital roadmap. The federal government formally launched a KRW 4.4 trillion Fund of Funds program that merges AI and deep tech funding with cultural IP and regional innovation. The inter-ministerial initiative alerts a decisive transition from coverage design to full-scale capital deployment—reshaping Korea’s enterprise finance structure for each home and international buyers.
Korea Launches ₩4.4 Trillion Fund of Funds for 2026
On January 23, the Ministry of SMEs and Startups (MSS) introduced the execution of the “2026 First Common Fund of Funds Funding Plan,” collectively established with the Ministry of Tradition, Sports activities and Tourism (MCST) and the Ministry of Oceans and Fisheries (MOF).
The three ministries, in cooperation with Korea Enterprise Funding Corp. (KVIC), will make investments KRW 2.1 trillion in authorities capital, mobilizing roughly KRW 4.4 trillion in whole enterprise fund formation.
This marks one of many largest coordinated public–non-public enterprise mobilizations in Korea’s historical past, encompassing AI, deep tech, cultural content material, and regional progress.
Below the MSS framework, KRW 1.6 trillion will likely be invested throughout 13 thematic areas, leading to KRW 3.6 trillion in enterprise capital capability.
Amongst these, the KRW 550 billion “Subsequent-Era Unicorn Growth Challenge” anchors the initiative, forming a KRW 1.3 trillion fund devoted to AI and deep tech ventures. This system offers stage-specific progress financing to assist early ventures evolve into scalable unicorns.
A KRW 740 billion Startup and Scale-up Fund and a brand new “Unicorn Fund” will collectively deploy greater than KRW 60 billion per firm in public–non-public co-investments, focusing on round 5 high-potential unicorn candidates.
In parallel, the KRW 250 billion World Enlargement Fund will assist startups in search of cross-border progress in Ok-Large Tech, whereas the KRW 230 billion Regional Development Fund—the biggest in its historical past—will channel funding into non-capital areas.
To strengthen liquidity, the MSS may even kind a KRW 200 billion Secondary Fund to amass LP stakes and current enterprise fairness and preserve a KRW 100 billion M&A Fund for enterprise succession.
Cultural IP and Maritime Innovation Be part of Korea’s Enterprise Capital Map
The Ministry of Tradition, Sports activities and Tourism will make investments KRW 499 billion to create KRW 731.8 billion in enterprise funds centered on mental property (IP), cultural expertise (CT), and movie.
Amongst them, the Korean Movie Most important Funding Fund rises from KRW 39.6 billion to KRW 56.7 billion, reflecting coverage concentrate on strengthening the nation’s movie manufacturing base and IP commercialization pipeline.
The Ministry of Oceans and Fisheries will contribute KRW 15 billion to launch a KRW 21.5 billion “Marine Life Zone Fund.” Its funding mandate targets non-capital regional maritime corporations, selling company progress and regional job creation.
Regional and World Capital Integration Drive the 2026 Framework
The 2026 Fund of Funds (often known as Mom Fund) introduces a multi-tiered regional funding mechanism linking mum or dad and sub-funds. Annually, roughly 4 areas will obtain KRW 4 trillion in mum or dad funds and KRW 7 trillion in sub-funds, with whole sub-fund formation anticipated to exceed KRW 3.5 trillion by 2030.
On the worldwide entrance, the MSS will contribute KRW 130 billion to kind over KRW 1 trillion in international funds. A new rolling funding program will collaborate with main home and worldwide buyers. By late 2026, the ministry plans to ascertain a international mum or dad fund in Singapore with an operational goal of USD 200 million by 2027.
This strategy goals to draw international enterprise capital into Korean startups, reworking the Fund of Funds right into a platform for international funding influx.
Korea’s 2026 Enterprise Capital Framework: Coverage Continuity and Funding Shift
The KRW 4.4 trillion program formalizes what was outlined in MSS’s earlier KRW 1.6 trillion Fund of Funds blueprint revealed earlier in January 2026. That earlier technique outlined the structural route—emphasizing AI, regional innovation, and accountable scale—whereas this launch delivers monetary execution throughout ministries.
Not like previous cycles the place funding concentrated in policy-driven sectors, the 2026 mannequin disperses capital throughout strategic expertise, cultural industries, and regional ecosystems. It additionally institutionalizes regional funding mandates, requiring at the least 20% of capital from normal funds to circulation outdoors the Seoul metropolitan space.
As well as, rechallenge financing for second-time founders expands from KRW 30 billion to KRW 120 billion, with the devoted fund rising to KRW 200 billion. Early-stage and youth entrepreneurship additionally obtain separate allocations: KRW 325 billion for early startups and KRW 66.7 billion for founders below 39.
Authorities Ministries Define Cross-Sector Funding Technique
Based on the MSS, this yr’s inter-ministerial enlargement builds upon the Fund of Funds’ 20-year position because the cornerstone of Korea’s enterprise capital market. Officers defined that this system’s design displays “a unified effort to attach coverage capital with non-public funding effectivity and international competitiveness.”
The MCST emphasised its aim to strengthen “funding capabilities that stretch from preliminary IP growth to commercialization,” enabling Korea’s inventive industries to scale globally.
The MOF highlighted that regional marine funding is a part of “a broader technique to hyperlink native industrial progress with high-quality employment in maritime economies.”
Implications for Korea’s Startup Ecosystem and World Enterprise Capital Flows
The 2026 Fund of Funds displays a governance shift in how Korea deploys state-backed enterprise capital. The inclusion of cultural and maritime sectors diversifies funding away from expertise alone, signaling a whole-of-economy strategy to enterprise scaling.
For international buyers, the institution of a Singapore-based mum or dad fund underlines Korea’s intention to internationalize its enterprise pipeline, connecting with sovereign wealth and institutional companions throughout Asia and past.
Regionally, the expanded funding mandate reinforces Korea’s non-capital startup corridors, creating localized monetary ecosystems that complement current hubs like Pangyo and Seoul.
The quadrupled funding for early and rechallenge ventures additionally introduces a security web for experimentation, countering the risk-averse capital local weather that beforehand sidelined early founders.
Closing Perspective: Korea’s Subsequent Enterprise Capital Part
With the KRW 4.4 trillion Fund of Funds now lively, Korea is getting into a brand new part of execution-led enterprise governance. The mixing of AI and deep tech with cultural and regional fairness mechanisms positions Korea’s enterprise ecosystem for a extra balanced, globally related progress trajectory.
How successfully this system channels funds into scalable outcomes—notably outdoors the capital area—will outline its long-term credibility amongst each home and international restricted companions.
As 2026 unfolds, the Fund of Funds stands as each a monetary and governance benchmark, testing how properly Korea can align industrial ambition with funding self-discipline.
2026 ₩4.4T Fund of Funds Key Takeaway
- Program Overview: Korea formally launches a ₩4.4 trillion Fund of Funds (2026) by means of a joint initiative by MSS, MCST, and MOF, combining private and non-private enterprise capital.
- Core Sectors: Funding focuses on AI, deep tech, cultural IP, and regional progress, marking a shift towards built-in cross-sector enterprise governance.
- AI & Deep Tech: ₩1.3 trillion allotted to the Subsequent-Era Unicorn Growth Challenge supporting scalable AI and deep tech startups.
- Cultural IP & Movie: ₩731.8 billion below the Ministry of Tradition, Sports activities and Tourism, together with IP, cultural expertise (CT), and Korean movie funding.
- Maritime Innovation: ₩21.5 billion Marine Life Zone Fund led by the Ministry of Oceans and Fisheries, focusing on non-capital regional maritime corporations.
- Regional Development: ₩230 billion invested in Regional Development Funds, increasing native startup ecosystems past Seoul and Pangyo.
- Liquidity & M&A: ₩200 billion Secondary Fund for LP share liquidity and a ₩100 billion M&A Fund to assist SME succession.
- World Integration: Launch of a Singapore-based World Fund (US$200M goal by 2027) to draw international enterprise capital into Korean startups.
- Coverage Mechanism: Institutionalized 20% regional funding mandate and multi-tiered sub-fund construction linking public finance with non-public capital effectivity.
- Strategic Influence: Positions Korea as a globally related enterprise capital hub, advancing innovation governance, regional stability, and cross-border capital alignment.
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