Deep tech rises in Korea's venture market, while global ties remain weak

Korea's venture market is shifting toward deep-tech industries including artificial intelligence (AI) chips and robotics, but weak ties with global investors remain a drag on the country's startup ecosystem, a senior industry official said Monday.

Lim Jung-wook, executive director of Startup Alliance Korea and a former deputy minister of SMEs and startups, made the remarks at SCG Investment's Global GP-LP Day in Seoul, which brought together seven U.S. general partners with about $14 billion in combined assets under management (AUM).

"Korea has chip design, foundries, materials, equipment and customers all within one country," Lim said. "There are not many countries in the world that can do this."

The startup sector is recovering from the downturn that followed the pandemic-era funding boom. Venture capital investment reached $6.6 billion in the first half of 2026, up 54 percent from a year earlier. Nine of the 10 standout deals this year involved companies in tech sectors, including Furiosa AI, Rebellions, Upstage and Exina.

Despite Korea's strengths in technology and manufacturing, its startups and venture firms remain little-known overseas, Lim said. Heavy reliance on government-backed capital also reduces private-sector risk-taking and weakens incentives for startups to expand globally, he added.

"Korea needs more global investors," Lim said. "Government money is strong, but global capital and M&As are still missing."

Lim urged foreign venture firms to bring portfolio companies into Korea, support Korean founders expanding in the U.S. and co-invest in Korean rounds from Series B onward. Overseas investors could also provide exit opportunities that remain limited domestically, he said.

U.S. venture firms attending the event pointed to Korea's growing appeal as AI investment expands into applications, semiconductors and infrastructure.

John Elton, a partner at Greycroft, said his firm hasn't yet invested in a Korean company but is looking for opportunities. Greycroft manages $4.5 billion and counts OpenAI among its portfolio companies.

"The interesting thing about Korea is the application layer," Elton told The Korea Times. "Many of the foundation model companies are in the U.S. and China, while here you see a lot of innovation being built on top of them."

Ryan Darnell, managing partner at Max Ventures, pointed to closer ties between the U.S. and Korean AI industries. Max Ventures manages $300 million and was an early investor in Coupang and Etched, a U.S. AI semiconductor startup.

"SK hynix is a major supplier, but it also made a significant investment in Etched," Darnell said. "It's interesting to see some of the best AI infrastructure companies in the U.S. partnering with some of the best local supply chain players in Korea."

Greycroft, MVP Ventures, Foundation Capital, Averin, Max Ventures, FJ Labs and Collaborative Fund attended the event. Korean family offices, institutional investors and strategic investors held one-on-one meetings with the firms to discuss fund commitments and co-investments.

The event marked the first time Samyang Chemical Group formally connected its global investment network with Korean investors, according to the company. The group has committed capital to more than 25 domestic and overseas funds, largely from its own balance sheet.