Joint Korea-Japan fund bets big on Jeju Island's tech startups

Swimmers enjoy the coastal waters of Yerae-dong in Seogwipo, Jeju Island, Thursday. Yonhap

By Lee Kyung-min

• Published Jul 24, 2026 4:10 PM KST

Long celebrated for its volcanic peaks and coastal tourism, Korea’s Jeju Island is engineering a new identity as a cross-border tech incubator.

Local authorities said Friday that a newly launched 10.1 billion won ($7.3 million) venture fund — backed jointly by Korean capital, local enterprises and Japan-based ethnic Korean investors — has deployed its debut capital investment, signaling a fresh pipeline of cross-border funding for regional entrepreneurs.

The fund's premier investment goes to Seropim, an artificial intelligence (AI) startup specializing in 3D content creation tools aimed at the global media and gaming markets. Jointly managed by the Jeju Center for Creative Economy and Innovation and Sevenstar Partners, the fund selected Seropim after a rigorous screening process involving more than 15 investor pitch sessions and detailed financial audits.

The Startup Korea Korea-Japan Jeju Fund was established specifically to solve a chronic hurdle for regional entrepreneurs: securing early-to-mid-stage capital while building bridges to international markets, particularly Japan and Southeast Asia.

To complement the joint venture fund, provincial authorities are also doubling down on early-stage seed funding to help startups navigate the infamous "Valley of Death" — the fragile growth phase between initial setup and commercial viability.

As part of this year's seed initiative, three additional local startups received direct capital injections: Momkkot Inc., a developer of AI-integrated smart greenhouse equipment; Itnew Inc., an AI-powered logistics platform; and Cross Combine Inc., a business platform designed to help local lifestyle brands expand internationally.

"Having cross-border capital flow directly into Jeju startups marks a critical milestone for our regional ecosystem," said Kim Nam-jin, director of Jeju Province’s Innovation Industry Bureau. "By building a virtuous cycle that connects early seed funding to follow-on private investment, we are laying down the bedrock for our local startups to leap onto the global stage."

The strategic bridge appears to be working.

Since Jeju initiated its seed investment model in 2018, it has funneled 2.76 billion won into 43 startups. That initial boost has catalyzed massive private follow-on support: nine recipient companies successfully entered Korea's prestigious TIPS tech incubator program (securing 5.16 billion won), while 22 others unlocked an additional 14.16 billion won from venture funds.

By pairing local seed support with international capital, Jeju officials said the latest project is proving that a thriving venture ecosystem doesn't need to be anchored in a mainland megacity to capture global ambition.

This article was published with the assistance of generative AI and edited by The Korea Times.