On November 14, 2024, the Ministry of SMEs and Startups (MSS) published a report detailing the trends in South Korea’s domestic venture investment and fund formation for the third quarter of 2024.

The cumulative venture investment for the first three quarters of 2024 amounted to KRW 8.6 trillion (approximately USD 6.5 billion), marking an 11.3% increase compared to the same period last year. This rise indicates a stable recovery phase for venture investment, which had previously slowed due to a challenging financial environment characterized by high interest rates.

Minister Oh Youngju commented on the resilience of the Korean venture capital market, stating, “Despite the global economic challenges, venture investment in Korea continues to grow steadily.” She further highlighted the government’s commitment to bolstering this growth through the ‘Advanced Venture Investment Market Leap Strategy,’ unveiled on October 2, aimed at creating a world-class venture investment ecosystem.

While global venture investment fell by 18.6% year-over-year, with Europe and the United States experiencing declines of 11.7% and increases of 6.4%, respectively, Korea’s venture investments have shown relative strength and resilience, outperforming broader global trends.

Investment growth was particularly notable in the ICT services and the Electrical, Machinery, and Equipment sectors, which surged by 46.8% and 24.4% respectively, fueling the overall expansion in venture investments.

Total fund formation for the first three quarters of 2024 reached KRW 8.2 trillion (approximately USD 6.2 billion), a 4.1% decrease from the same period in 2023. Despite this year-over-year decline, fund formation has shown positive momentum, increasing from KRW 2.5 trillion in the first quarter to KRW 3.1 trillion in the third quarter, signaling a rejuvenation in investor confidence and financial backing for emerging ventures.