KDReview

Korea to launch 50 billion won In-Q-Tel-style fund for security-tech startups, backed by MSS and DAPA

| Seoul Economic Daily
startups DAPA Ministry of SMEs and Startups venture fund In-Q-Tel defense tech policy

South Korea's government plans to establish a 50 billion won venture fund for startups developing security-critical technologies, including AI, semiconductors, space, and defense applications, Seoul Economic Daily reported on September 5, 2026. The Ministry of SMEs and Startups and the Defense Acquisition Program Administration will each contribute 25 billion won, with the fund to grow beyond 200 billion won by 2030. Modeled on In-Q-Tel, the CIA's venture arm, the new institution will sit under Korea Venture Investment Corp. and invest roughly 2-3 billion won per company in early-stage firms with strong technology but unproven commercialization, prioritizing strategic value over financial return. Launch is targeted for mid-2027 at the earliest, pending National Assembly passage of a special act this year. The plan follows the February 2026 MSS-DAPA pledge to nurture 100 defense-participating startups and 30 "defense venture 100-billion-won companies" by 2030.