South Korea's Korea Venture Investment Corp. (KVIC) has launched the H2 Global Fund 2025, committing approximately $560 million USD to invest in overseas-managed funds that are required to reinvest at least the same amount into Korean startups, part of a broader strategy to boost the startup ecosystem.

This new fund complements earlier initiatives, including a $2.4 trillion global fund aimed at attracting overseas venture capital focused on AI, climate tech, and secondary investments, reflecting Korea's strategic push to accelerate startup growth amid global liquidity challenges.

The H2 Global Fund 2025 aims to catalyze at least $1.46 billion USD in new venture capital funds, thereby strengthening Korea's position within the global venture capital landscape.

Structured as a mother fund, it pools approximately $420 million USD from private investors and $150 million USD from the Korea Fund of Funds to seed 22 sub-funds focused on deep-tech, open innovation, and secondary investments.

Major allocations include around $200 million USD for deep-tech, $150 million USD for open innovation, and $110 million USD for secondary exit and recapitalization funds.

Eight new institutional investors, including Cosmax and Sungkyunkwan University Technology Holdings, are participating for the first time, alongside existing investors expanding their commitments.

This fund represents a strategic platform uniting government, large corporations, financial groups, and overseas investors, aiming to foster global collaboration and enhance Korea’s startup ecosystem.

Benefits for Korean startups include access to international investors, networks, and scale-up opportunities, with the government actively engaging global players to support the ecosystem's growth.

Since 2013, Korea’s Global Fund has mobilized over $9.4 billion USD across 74 funds, supporting the growth of 654 startups, including several unicorns like Bucketplace, Moloco, and Rebellion.

Minister Han Seong-sook emphasized that private sector mobilization is central to Korea’s venture strategy, with plans for regulatory reforms to encourage private investment.

Applications for new global fund managers for the second-half 2025 program are open from September 5 to September 19, with final selections announced in early December, requiring managers to reinvest at least once the amount of KVIC’s commitment into Korean companies.

KVIC CEO Lee Dae-hee highlighted the fund’s role in fostering Korean unicorns and positioning Korea among the top four global venture ecosystems, serving as a bridge between startups and international investors.