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South Korea's national growth fund approves 560 bln won investment in AI startup Upstage
South Korea's government invested $380 million in AI startup Upstage through its Korea National Growth Fund. The Seoul-based unicorn builds large language models and AI solutions.
South Korea commits $380 million to AI startup Upstage
South Korea's Financial Services Commission approved a 560 billion-won ($380.6 million) investment in Upstage Co., a Seoul-based AI startup, on Thursday. The Korea National Growth Fund made the decision at its deliberation committee meeting.
Upstage, founded in 2020, develops large language models and AI solutions. The company holds unicorn status with a valuation exceeding 1 trillion won.
This marks the second direct investment from the policy fund. Rebellions Inc., which makes neural processing units for AI inference, received the first allocation.
Broader funding strategy
The deliberation committee also approved four additional funding plans during the same meeting. One allocates 400 billion won toward constructing an AI computing center in South Jeolla Province.
The Korea National Growth Fund, introduced last year, targets startups in strategic sectors including AI, biotechnology, and semiconductors. The government plans to raise 150 trillion won from both private and public sources over a five-year period.
For finance professionals tracking government investment in technology, these commitments signal sustained policy support for the sector.