The National Growth Fund is breathing new life into Korea's venture investment market. With hundreds of billions of won flowing rapidly into national strategic industries such as artificial intelligence (AI) chips and generative AI, large-scale funding deals are emerging one after another. Domestic venture capital firms (VCs) are now closely watching which company will become the fund's next investment target, racing to secure stakes in leading candidates ahead of competitors.
According to the venture investment industry on the 23rd, the National Growth Fund recently made large-scale investments in Rebellions and Upstage. Rebellions was valued at more than 3 trillion won following the National Growth Fund's investment, while Upstage also joined the unicorn club. As the fund channels large sums into AI companies with strong growth potential, follow-on participation by private investors has been expanding alongside.
The benefits of attracting investment from the National Growth Fund go beyond simply securing capital. There is significant symbolic weight in being recognized by the government as a core company in a national strategic industry. The industry also views the fund as helping elevate the global standing of domestic AI startups. For overseas investors, an investment from the National Growth Fund can be interpreted as a signal of continued government support for the company. Potential collaboration with major Korean conglomerates such as Samsung and SK is also drawing attention, sources said.
FuriosaAI is seen as the leading candidate for the National Growth Fund's next AI chip investment. FuriosaAI is regarded, alongside Rebellions, as one of Korea's flagship AI chip startups, and is pursuing global market expansion with its next-generation AI chip "Renegade." FuriosaAI has reportedly been under review as an investment candidate since the early days of the fund's launch, with discussions continuing for a relatively long period. The industry expects the investment to be finalized in the near future. If the deal is completed, it would mark the first time a company whose largest shareholder is a U.S.-national founder receives investment from the National Growth Fund.
Meanwhile, the mood has reportedly cooled around DeepX, another AI chip startup that had been considered a strong candidate. According to the investment industry, the National Growth Fund recently put its review of DeepX on hold. Opinions among investment review personnel were reportedly divided over issues such as the company's valuation and assessment of its founder. The possibility of investment discussions resuming remains open.
Some observers say it will be difficult for additional AI chip investments beyond FuriosaAI to materialize for the time being. Because the National Growth Fund executes large-scale investments worth hundreds of billions of won, recipient companies need a total valuation approaching at least 1 trillion won. Other AI chip startups such as HyperAccel and Mobilint are also recognized for their technological capabilities, but their current valuations fall short of the 1 trillion won mark. Analysts say they are still too small to qualify as direct investment targets for the National Growth Fund. VCs are increasingly viewing these AI chip startups as strong long-term candidates for National Growth Fund investment and are moving to secure stakes ahead of time.
"There aren't many companies capable of attracting investments worth hundreds of billions of won, so for the time being, investments are likely to be concentrated on a small number of deep-tech companies whose valuations are already close to 1 trillion won," a venture investment industry official said. "The National Growth Fund is not simply an investor putting in money, but plays a role in drawing in the participation of other investors. Companies that receive policy funds inevitably attract private capital as well, and interest from overseas investors is bound to grow."
