The Korea Intellectual Property Office will raise 136.7 billion won in intellectual property (IP) investment funds this year, the agency said Tuesday.
The funds to be raised this year span three areas: direct IP investment (16.7 billion won), IP transactions and commercialization (20 billion won), and patent technology commercialization (100 billion won). A total of 32.5 billion won will be contributed from the patent account of the Fund of Funds.
The direct IP investment fund invests in IP monetization projects created by domestic IP monetization specialists, such as non-practicing entities (NPEs). These projects first acquire core domestic patents and then monetize them through licensing agreements and patent infringement lawsuits targeting foreign companies. Unlike typical venture funds that take equity stakes in companies, this fund's distinguishing feature is investing in projects that directly acquire and utilize IP.
This year, the government contribution ratio for the direct IP investment fund was raised to 60 percent from the previous 50 percent. The scope of priority loss coverage was revised to within 10 percent of the fund's formation size, from the previous level of within 15 percent of the Fund of Funds contribution. Priority loss coverage is a system in which the patent account of the Fund of Funds covers losses first when private limited partners (LPs) incur losses.
The IP transactions and commercialization fund invests in companies that receive transfers of patent technologies from domestic small and medium-sized enterprises, universities, and public research institutes and commercialize them, in order to invigorate the patent technology trading market. The fund also partly permits the acquisition of existing shares in startups and small and medium-sized enterprises that hold strong IP.
The patent technology commercialization fund is raised through joint contributions with Korea Growth Investment Corp. It invests in companies in the 12 national strategic technology areas, companies with strong technology evaluations, and patent technology commercialization companies that have undergone IP valuation prior to investment. Through this, the fund plans to intensively supply capital so that innovative companies in deep-tech fields can succeed in commercialization based on IP.
Meanwhile, fund managers wishing to participate in this Fund of Funds patent account contribution program can check the June 2026 ad hoc contribution program announcement on the Korea Venture Investment Corp. website and submit proposals online from July 8 to July 15.
