South Korea’s Gangwon State Launches $112.5 Million Fund to Support Startups and Strategic Industries
- ByStartupStory | November 2, 2025
South Korea’s Gangwon State Launches $112.5 Million Fund to Support Startups and Strategic Industries
In a significant move to diversify and strengthen regional economic development, South Korea’s Gangwon Special Self-Governing Province has established a venture capital fund worth approximately $112.5 million (KRW 150 billion) aimed at fueling startups and innovation within the province. This initiative positions Gangwon as a notable player in Korea’s growing effort to decentralize startup investment away from the Seoul metropolitan area and foster high-tech entrepreneurial hubs across the country.
Launched with the support of the South Korean Ministry of SMEs and Startups, the Gangwon Strategic Industry Venture Fund was formally inaugurated with a ceremony attended by key provincial leaders and national officials. The fund is initially seeded with KRW 105.6 billion (~$81 million), comprising KRW 60 billion contributed by the Korea Fund of Funds and KRW 45.6 billion from Gangwon Province, seven local municipalities including Chuncheon, Wonju, Gangneung, and financial institutions like NongHyup Bank.
This “regional mother fund” model, now the third of its kind in South Korea after similar funds in Chungnam and Busan, aims to catalyze investments into localized sub-funds that target startups and companies operating within Gangwon. Over time, the fund is expected to grow to KRW 150 billion (~$112.5 million), thus injecting substantial capital flows into the province’s startup ecosystem.
Gangwon’s fund has a sharp focus on seven future industries identified as critical for regional and national economic growth: semiconductors, biotechnology, hydrogen energy, future mobility, food technology, advanced defense technology, and climate technology. This targeted approach aligns with Gangwon’s ambition to transform from a tourism and leisure hub into a strategic base for deep tech, green innovation, and manufacturing excellence.
Lim Jung-wook, Director General for Startup and Venture Innovation at the Ministry of SMEs and Startups, emphasized the fund’s strategic role: “Gangwon is poised to become a center of innovation, not just in tourism but as a powerhouse in strategic industries critical to Korea’s future. This fund will ensure startups in these sectors receive the support and resources necessary to thrive.”
The fund’s launch is part of a broader national policy to rebalance Korea’s startup investment landscape, which historically has been Seoul-centric, by empowering other regions with dedicated capital and infrastructure to nurture local entrepreneurs. By fostering a comprehensive venture capital ecosystem outside the capital, the government aims to promote sustainable economic growth and innovation diversification.
In addition to capital deployment, the Gangwon startup ecosystem benefits from structured entrepreneurship programs offering commercialization funding, mentoring, networking, and investment matchmaking, further strengthening the province’s ability to produce globally competitive startups.
In conclusion, Gangwon Province’s establishment of a $112.5 million venture fund marks a pivotal step in South Korea’s regional startup development strategy. By focusing on future-forward industries and leveraging strong governmental and local partnerships, Gangwon is setting the stage to become a dynamic innovation hub, helping decentralize economic opportunity and catalyze the next wave of technology-driven growth in Korea.
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