In South Korea, venture investment and fund formation have been on a downward trend since the second half of last year, with the first quarter of 2023 showing a 60.3% decrease in investments. In an attempt to fill the investment vacuum, the Korean Ministry of SMEs and Startups (Minister Lee Young) and the Financial Services Commission (Chairman Kim Joo-hyun) held a meeting of ministers related to pending state affairs presided over by the Prime Minister on April 20 and announce ‘Innovative Venture/Startup Funds to Overcome the Economic Crisis and Securing Future Growth Engines’ Support and Competitiveness Reinforcement Plan.’

The government will inject additional policy funds of more than 10.5 trillion won ($7.93 billion) for the domestic venture and startup industry, which is experiencing financial difficulties due to the aftermath of the economic slowdown.

The South Korean government has announced a comprehensive plan to support startups at various stages of growth. The plan includes funding, loans, and other measures to help early-stage startups attract Seed to Series A investments, mid-stage startups attract Series B to Series C investments, and late-stage startups looking for M&A opportunities and global expansion.