Kakao Ventures eyes 1,000x returns as global interest in K-startups surges
Synopsis
A seed cheque of 200 million won placed in a three-person startup in 2013 returned over 1,000 times its value — and that's just the headline. With a 100-billion-won fund in the works and foreign limited partners knocking on its door, Kakao Ventures is betting that South Korea's AI and hardware moment is only beginning.
Key Takeaways
Kakao Ventures earned a more than 1,000-fold return from its investment in Dunamu , operator of crypto exchange Upbit , yielding around 2.2 trillion won on exit alongside parent Kakao Corp.
The firm's initial seed investment in Dunamu was 200 million won in 2013 , followed by two further rounds totalling 3.3 billion won .
Kakao Ventures manages 410 billion won in assets and has been the first institutional investor in 90% of its roughly 300 portfolio companies .
A potential IPO of Rebellions , a chip startup valued at US$2.3 billion , is expected to sustain the firm's annual exit pace in 2027 .
A new fund of around 100 billion won — nearly triple previous fund sizes — is being planned, targeting AI infrastructure and hardware.
Foreign limited partners are increasingly approaching the firm amid renewed global interest in South Korea's manufacturing and deep-tech ecosystem.
Kakao Ventures, one of South Korea's most prominent early-stage venture capital firms, is riding a wave of renewed global investor interest in Korean startups — backed by a track record that includes a more than 1,000-fold return on a single bet placed over a decade ago.
The Dunamu Story
In 2013, when Dunamu — now the operator of South Korea's largest cryptocurrency exchange, Upbit — had just three employees, Kakao Ventures made its first seed investment of 200 million won (approximately US$129,575). Kim Ki-jun, Chief Executive Officer of Kakao Ventures, then led two follow-up investment rounds in 2015 and 2017, totalling 3.3 billion won.
Thirteen years on, Kakao Ventures and its parent company Kakao Corp. sold a portion of their stakes in Dunamu, securing around 2.2 trillion won from the exit. 'Our efforts to search for and invest in entrepreneurs that continue to change and capture new opportunities … have reaped great results,' Kim said in a recent interview at the company's headquarters in Pangyo, south of Seoul. 'We expect to realise a return of around 300 billion won by year's end.'
Portfolio Scale and Exit Track Record
Established in 2012, Kakao Ventures focuses exclusively on early-stage startups, with 410 billion won in assets under management as of June 2025. The firm primarily targets seed and Pre-Series A rounds, and has been the first institutional investor in 90 percent of approximately 300 startups in its portfolio, according to Kim.
The company has averaged exits worth around 150 billion won annually over the past five years. It expects to sustain that pace in 2027, with a potential listing of Rebellions — a domestic chip startup valued at around US$2.3 billion. 'It is about time to recoup (investments in Rebellions) through an initial public offering (IPO),' Kim said.
Global AI Boom Drives Foreign Interest
Kim, a nuclear engineer-turned-venture capitalist, says he is observing a marked uptick in global attention toward Korean startups, driven by the worldwide artificial intelligence (AI) boom. Limited partners from abroad are reportedly approaching Kakao Ventures for startup introductions and secondary share sales, drawn by South Korea's deep manufacturing capabilities — anchored by conglomerates such as Samsung Electronics, SK Hynix Inc., and Hyundai Motor Co. — as well as the country's strong talent pool.
A local stock market rally has further bolstered investor confidence, raising expectations for successful IPO exits, Kim noted. This comes amid a broader global reassessment of Asian tech ecosystems beyond China, with South Korea emerging as a preferred destination for hardware and semiconductor-adjacent bets.
New Fund and Global Expansion
Against this backdrop, Kakao Ventures is planning a new fund of around 100 billion won — nearly triple the size of its previous funds. The expanded capital base is intended to enable larger, yet disciplined, bets on early-stage companies in capital-intensive sectors, including AI infrastructure and hardware.
The firm has also been extending its reach internationally since last year, backing Silicon Valley startups in space, robotics, and semiconductors. With global capital increasingly seeking exposure to Korea's tech stack, Kakao Ventures appears positioned to act as a key bridge between Korean deep-tech founders and international institutional money.
Point of View
But the more instructive signal is what's happening at the margins: foreign limited partners are now seeking secondary access to Korean startups they previously overlooked. South Korea's hardware and semiconductor depth — long treated as a corporate story centred on Samsung and SK Hynix — is finally registering as a venture opportunity. The planned tripling of fund size is a direct response to that shift, and it signals that early-stage Korean VC is moving from a domestic cottage industry to a globally legible asset class. The real test will be whether Rebellions' IPO delivers a clean exit or, like many deep-tech listings, disappoints on timing and valuation.
NationPress
4 Jul 2026
Frequently Asked Questions
What is Kakao Ventures and what is its investment focus?
Kakao Ventures is a South Korean venture capital firm established in 2012 that focuses on early-stage startups, primarily at the seed and Pre-Series A stages. As of June 2025, it manages 410 billion won in assets and has backed approximately 300 startups, acting as the first institutional investor in 90% of them.
How did Kakao Ventures achieve a 1,000-fold return on Dunamu?
Kakao Ventures made an initial seed investment of 200 million won in Dunamu in 2013, when the company had just three employees, followed by two additional rounds in 2015 and 2017 totalling 3.3 billion won. When Kakao Ventures and parent Kakao Corp. sold part of their stakes, the combined exit secured around 2.2 trillion won.
What is the Rebellions IPO and why does it matter?
Rebellions is a South Korean chip startup currently valued at around US$2.3 billion, in which Kakao Ventures holds a stake. CEO Kim Ki-jun has indicated the firm expects to recoup its investment through an IPO targeted for around 2027, which would help sustain the firm's annual exit run rate of approximately 150 billion won.
Why are global investors showing renewed interest in Korean startups?
According to Kakao Ventures CEO Kim Ki-jun, the global AI boom has prompted foreign limited partners to rediscover South Korea's manufacturing capabilities — backed by conglomerates like Samsung Electronics, SK Hynix, and Hyundai Motor — and its strong talent pool. A local stock market rally has also raised expectations for successful IPO exits.
What are the details of Kakao Ventures' planned new fund?
Kakao Ventures is planning a new fund of approximately 100 billion won, nearly triple the size of its previous funds. The capital is intended to support larger bets on early-stage companies in capital-intensive sectors such as AI infrastructure and hardware, and complements the firm's expanding focus on Silicon Valley startups in space, robotics, and semiconductors.
