This funding will focus on advanced industries such as AI, deep tech, semiconductors, and biotech, allocating 600 billion won for unicorn development and 800 billion won for supporting 're-challenge' entrepreneurs.

These initiatives reflect Korea’s strategic shift toward establishing long-term, large-scale public-private venture capital infrastructure to foster startup growth, unicorn creation, and leadership in AI and semiconductors.

The government will also contribute 1 trillion won (approximately $740 million) to the Growth Fund to de-risk private investments, utilizing financial tools like loans, guarantees, and equity investments.

South Korea is dramatically increasing its investment in startups and innovation, with the 2026 Mother Fund doubling to a record 2 trillion won ($1.5 billion), marking the largest government-backed investment in the country's startup ecosystem to date.

Korea’s 2026 budget prioritizes AI, R&D, and advanced manufacturing, aiming to build a venture investment market of at least 40 trillion won (~$30 billion) annually to boost innovation and global competitiveness.

The Tech Incubator Program for Startups (TIPS) will see an unprecedented budget increase to over 1 trillion won (~$820 million), expanding support for startups through new programs like the Unicorn Bridge and increased open innovation funding.

The expansion of the Mother Fund is expected to leverage private capital, potentially generating sub-funds totaling 9 trillion won ($5.9 billion), significantly boosting startup funding across Korea.

Additionally, Korea is launching a 100 trillion won ($74 billion) National Growth Fund over five years to accelerate strategic industries, with 50 trillion won from the Korea Development Bank and matching private investments.