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

Korea's venture market is increasingly focused on deep-tech industries, such as artificial intelligence (AI) chips and robotics, according to a senior industry official. Lim Jung-wook, executive director of Startup Alliance Korea and former deputy minister of SMEs and startups, highlighted this trend during a panel at SCG Investment's Global GP-LP Day in Seoul. The event convened seven U.S. general partners, collectively managing $14 billion in assets under management (AUM).

Lim noted that Korea's advantages in chip design, foundries, materials, equipment, and customers all reside within its borders, a unique position among countries. The startup sector is rebounding from the post-pandemic recession, with venture capital investments surging to $6.6 billion in the first half of 2026, marking a 54% increase compared to the previous year. Nine of the ten most notable deals in 2026 centered on technology sectors, including Furiosa AI, Rebellions, Upstage, and Exina.

Despite Korea's technological prowess and manufacturing capabilities, the country continues to struggle with weak ties to global investors, according to Lim. This limitation appears to be hindering the full potential of Korea's venture market.