South Korea's Financial Services Commission said it and the Ministry of SMEs and Startups have signed a memorandum of understanding with five financial holding groups and related industry organizations to expand venture financing, support the Startup for All project and accelerate a transition to productive finance. The package is built around new private sector funding commitments for the startup and venture ecosystem, including a combined KRW800 billion venture fund through 2029 and support measures tied to a new KRW150 billion technology guarantee program for prospective startup founders. The five financial holding groups will contribute KRW400 billion this year toward the KRW800 billion target. Hana Financial Group pledged KRW400 billion in total, or KRW100 billion a year, to lead the effort. The groups will also contribute alongside policy-based funds to create a KRW100 billion growth fund and a KRW20 billion regional growth fund, and will use overseas offices and global business networks to help invested companies scale internationally. For Startup for All, the groups will invest KRW20 billion, enabling the Korea Technology Finance Corporation to introduce a KRW150 billion technology guarantee program under which guarantee fees will be fully waived and the guarantee rate will rise to 100 percent from 85 percent. Participation is also intended to expand financial mentorship and accelerator support. The government plans to offer incentives, including additional tax exemptions, to encourage wider private sector participation. The two ministries also plan to establish cooperation channels for operating policy-based funds, designing industry support programs, identifying innovative companies and strengthening support for regional economies and enterprises.
South Korea Financial Services Commission 2026-04-30
South Korea's Financial Services Commission and Ministry of SMEs and Startups sign MOU to mobilize KRW800 billion for venture investment and expand Startup for All
The South Korea Financial Services Commission and the Ministry of SMEs and Startups signed an MoU with five financial holding groups and industry bodies to expand venture financing, support the Startup for All project and promote productive finance. The package includes a KRW800 billion venture fund through 2029, a KRW150 billion technology guarantee program with full fee waivers and a 100 percent guarantee rate, new growth and regional funds, expanded mentorship and accelerator support, and planned government incentives such as additional tax exemptions to spur private participation.