[Edaily Reporter Kim Se-yeon ] The government is accelerating efforts to revitalize venture capital investment, stating that it aims to improve the capital market’s structure and promote “productive finance.” Since last month, it has eased regulations, expanding the scope of statutory funds eligible for venture capital investment from the previous 44 to all funds governed by the National Finance Act. However, data shows that over the past five years, only five of the 44 funds originally eligible for investment actually contributed to venture capital funds. While the government expects this year’s investment from statutory funds to increase more than fivefold compared to last year, last year’s investment amount had already fallen significantly, and the prospect of additional investments remains uncertain.

According to data submitted on the 21st by the Ministry of SMEs and Startups to the office of Rep. Kim Han-kyu of the Democratic Party of Korea, out of the 44 statutory funds previously eligible for venture investment, only five have invested in venture funds under the Ministry’s jurisdiction over the past five years. These include the Public Officials’ Pension Fund, the Korea Technology Finance Corporation, the Korea Trade Insurance Corporation, the Private School Teachers’ Pension Fund, and the Workers’ Compensation and Prevention Fund.
The downward trend is particularly noticeable when broken down by year. The number of investments, which reached 12 in 2020, has steadily decreased: △9 in 2021, △8 in 2022, △6 in 2023, and △3 in 2024. Although the number rose to 4 last year—an increase of one compared to the previous year—there have been no investments so far this year through June.
The amount of capital invested has also shown a downward trend. The annual investment by statutory funds in venture funds, which reached 210 billion won in 2020, fell sharply to 45 billion won in 2024. Although it rebounded to 80 billion won last year, it remains less than half the 2020 level. Since no investments were made through June of this year, the investment amount for this year stands at 0 won.
Statutory funds, established by law, are one of the primary sources of funding for the venture capital market. In response, the Ministry of SMEs and Startups (MSS) recently launched the “LP Growth Fund” to encourage venture investments by these funds. According to the Ministry of SMEs and Startups, three funds—the National Sports Promotion Fund, the Industrial Accident Compensation Insurance and Prevention Fund, and the Supply Chain Stabilization Fund—have confirmed their contributions, and several pension funds are considering additional contributions. The government expects that once their participation is confirmed, this year’s investment from statutory funds will increase more than fivefold compared to last year.
However, for a venture fund to actually invest in venture companies, it must first select a fund management company, raise capital from other investors to establish the fund, and then register it with the Ministry of SMEs and Startups. Only after a fund is officially registered will its venture investments be counted toward the statutory funds’ performance. The problem is that if sufficient capital from other investors cannot be raised, the formation of the fund may be delayed. Ultimately, without successful additional fundraising, the government’s projected “fivefold increase in investment” may remain nothing more than a number.