Investment in Korean startups is concentrating in physical artificial intelligence (AI) and robotics. Startups in other sectors complain that securing investment has become difficult. The polarization surrounding startup investment appears set to continue for the time being.
According to venture investment platform TheVC, 54.7% of the amount invested in early-stage rounds among all private companies through May this year was concentrated in the AI and robotics sectors. This marks the first time the investment share of the AI and robotics sectors has exceeded half. By number of deals, investments in AI and robotics startups accounted for 35% of the total. Compared with four years ago, the share has more than doubled.
Investment in AI and robotics firms tended to be more concentrated at the seed stage. Of the 149 seed investments made this year, 63, or 42%, were investments in AI and robotics. This was an increase of about 10 percentage points from last year. By investment amount, AI and robotics investments at the seed stage accounted for 91% of the total.
This is because "mega seed" rounds have recently taken place centered on a few startups. A representative example is Config Intelligence. Config Intelligence, which develops robotics foundation models, also succeeded last month in attracting 40 billion won in seed investment. The company drew industry attention as major conglomerates including Samsung, LG, Hyundai, and SK participated as strategic investors from the seed stage.
Config Intelligence is building and synthesizing physical AI data needed to develop robot foundation models. To utilize Korea's manufacturing infrastructure and the U.S. AI ecosystem simultaneously from the early stage of its business, the company established its headquarters in San Jose, California, in 2024. It subsequently set up and operates a separate Korean corporation.
Holiday Robotics recently attracted 150 billion won in investment in a Series A round. This was the largest amount among early-stage rounds this year. IMM Investment served as lead investor, with Atinum Investment and Stonebridge Ventures participating.
The company is a startup developing humanoid robots, working on robot hands, tactile sensors, and movable joints. It unveiled its first humanoid robot, "Friday," last October and plans to begin mass production starting in July this year.
By contrast, startups in other sectors are voicing difficulty in attracting investment. One industry official said, "We are pursuing investment, but I could feel that venture capital (VC) interest has fallen compared with before," adding, "Now it is difficult to draw VC interest with AI alone."
A VC industry official likewise said, "There is a lot of interest in robotics, but the market is still in its early stages and there are not many exit options such as initial public offerings (IPOs), so the risk is high." The official added, "As a result, investment proposals are concentrating in a small number of startups known to have even slightly better technological capabilities."
