Is Korea poised to become the next global venture powerhouse? As its venture capital ecosystem matures, the nation is doubling down on a proven strategy: the Mother Fund. Celebrating its 20th anniversary, this national investment engine is being redefined to prioritize AI, deep tech, and bio-innovation, ensuring that Korean startups have the capital they need to compete on the world stage.
## Two Decades of Fueling Korean Innovation
The Mother Fund Future Strategy Forum, held on November 27th, marked a significant milestone. Hosted by the Ministry of SMEs and Startups (MSS) and Korea Venture Investment Corporation (KVIC), the event brought together key players – policymakers, researchers, fund managers, and founders – to chart the Fund’s future. Discussions centered around strengthening the Fund’s role as a national platform, specifically focusing on AI, bio, and deep tech industries. These sectors are seen as crucial pillars for Korea’s next phase of economic growth.
Adapting global best practices, particularly from pension funds, to the unique dynamics of the Korean market was also a key theme. Regional investment and specialized sub-funds were highlighted as crucial for strengthening the Mother Fund’s reach and impact.
## Patient Capital for Deep Tech’s Long Game
A central theme emerged: the rise of AI and deep tech demands a new kind of investment. Experts emphasized the need for “patient capital” – sustained funding that supports startups from early stages all the way to global scale. This long-term perspective is critical for nurturing companies capable of becoming globally competitive unicorns.
This strategy also reflects Korea’s ambition to build a self-sustaining venture cycle, where investment leads to successful exits, which then fuels further investment. KVIC CEO Lee Dae-hee underscored the Fund’s crucial role in driving this momentum. He pledged to refine the Fund’s strategy to support innovative ventures, ultimately aiming for a 40-trillion-won annual venture investment market.
## Building a Sustainable Venture Ecosystem
This isn’t just about throwing money at startups. It’s about creating a sustainable, innovation-driven ecosystem. The Mother Fund’s focus on AI, deep tech, and regional innovation is a deliberate effort to align public capital with strategic industries. These efforts are tied to Korea’s ambition to join the ranks of the world’s top four global venture powerhouses, competing alongside the US, China, and Japan. By prioritizing deep tech, patient investment, and scale-up capacity, Korea is setting its sights on global venture leadership. As Korea enters its next venture boom, the Mother Fund’s evolution will be critical in shaping the nation’s global competitiveness and establishing a model for sustainable venture policy across Asia.
