Geopolitical hurdles in Asia and supportive policies draw global venture capital to South Korea
Global venture capital (VC) firms are expanding their presence in the South Korean market. They are increasingly viewing South Korea as a new investment hub and technology partner in Asia, engaging in active exploration.
Andreessen Horowitz (a16z), ranked among the world’s top three VCs, opened its Seoul office last month through its cryptocurrency investment arm, a16z Crypto (crypto). The company selected South Korea as its headquarters for Asian expansion. A16z emphasized, “South Korea is the world’s second-largest cryptocurrency market, with one in three adults holding virtual assets,” highlighting its market potential. It added, “We plan to strengthen our position in Asia and explore new ways to expand our geographical influence.”
Investors specializing in tech are also making notable entries. Mangusta Capital, founded in 2024 by Kevin Jiang — a former founding member of SoftBank’s Vision Fund — recently began recruiting a Korea-focused investment manager to identify local startups and engage with founders. An industry insider noted, “Though still in the exploration phase, this reflects growing interest from top-tier global investors in the South Korean market.” Plug and Play, which nurtured companies like Uber and PayPal, expanded its presence to Busan last year after entering Seoul in 2021, focusing on discovering early-stage promising startups.
Government policies are further facilitating global capital inflows. The Ministry of SMEs and Startups formed a global fund last year, selecting three U.S. VCs as managers and mandating investments of at least 30 million dollars (approximately 44 billion Korean won) in South Korean startups. Third Prime Capital, one of the fund’s managers, recently invested 17 billion Korean won in domestic defense tech startup “Bone.”
Regarding global VCs’ entry into South Korea, an industry insider stated, “Investments in China are geopolitically challenging, while Japan’s market is slow-moving and often remains domestically focused.” “South Korea is an attractive alternative,” they added.
Experts argue that sustained long-term investment requires proven success stories. An industry insider remarked, “Global VCs are coming to South Korea because they see it as a ‘profitable market.'” “For this investment cycle to continue, demonstrating tangible results is crucial,” they emphasized.
