South Korea’s venture investment market showed signs of recovery in the first half of 2025, with both new venture investments and new venture fund formations increasing compared with a year earlier. Two new unicorns - privately held startups valued at over 1 trillion won ($730 million) - also emerged during the period.

The Ministry of SMEs and Startups said on Wednesday that new venture investments totaled 5.68 trillion won, up 3.5 percent from 5.49 trillion won in the same period during the previous year.

A strategy of selection and concentration led to a sharp rise in average investment per company, which grew 29.7 percent from 2.30 billion won in the first half of 2024 to 2.99 billion won in 2025. The increase was driven by a higher number of companies securing large-scale funding, with the number of firms attracting over 30 billion won each rising from one to five during the period, according to venture capital firms and funds.

By sector, investment in bio and medical businesses rose by 124 billion won, the largest gain, while the gaming industry recorded the highest year-on-year growth rate at 100 percent. Two companies backed by venture capital firms and funds reached unicorn status in the first half of the year: AI semiconductor designer FuriosaAI and cosmetics manufacturer and distributor Benow.

The amount raised for venture funds - capital that could translate into future investments - also increased to total 6.17 trillion won in the first half of 2025, up 19.4 percent from a year earlier. This is the second largest first-half fundraising total on record, following the 8.68 trillion won figure recorded for the first half of 2022. By investor type, policy finance grew 7.6 percent year-on-year while investments from pension funds, mutual aid associations, and corporations rose 130 percent and 57.6 percent respectively to support the upward trend.

Minister of SMEs and Startups Han Seong-sook said the government will continue policy efforts to help promising companies grow via venture investment and advance into global markets.

[ⓒ 매일경제 & mk.co.kr, 무단 전재, 재배포 및 AI학습 이용 금지]