SEOUL, South Korea — South Korea’s deep technology sectors attracted a record 3.6 trillion won (approximately $2.6 billion) in venture capital last year, the government announced on Wednesday, marking a significant acceleration in funding for the country’s most innovative industries.

The Ministry of SMEs and Startups released data showing a 34 percent increase in investments across 10 designated deep tech sectors in 2024 compared to the previous year, representing the highest investment level in the past five years.

“This robust growth signals increasing investor confidence in Korea’s technological capabilities,” said Oh Youngju, the minister of SMEs and Startups, in a statement released from the ministry’s headquarters in Sejong.

The biotech and healthcare sector led the investment landscape, securing 33 percent of all deep tech funding, closely followed by artificial intelligence and big data at 26.7 percent. The ministry’s report highlighted artificial intelligence as the fastest-growing sector, with an extraordinary investment increase of 415.8 billion won.

Within the AI ecosystem, companies focused on software development received the largest share of funding. However, investments in AI infrastructure services and computing hardware manufacturing surged dramatically, growing by 113.9 percent and 290.9 percent respectively.

The government’s analysis revealed that three-quarters of the companies receiving these investments had previously benefited from state-backed funding programs. According to the ministry, 682 companies had received investments totaling 8.8 trillion won through government-affiliated master fund programs.

Minister Oh indicated that this trend aligns with the government’s strategic priorities. “Moving forward, we will increase venture investments in promising deep tech sectors and strengthen policy support to nurture globally competitive deep tech startups,” she said.

The announcement comes as South Korea implements recently unveiled plans to boost its bio venture ecosystem and expand AI utilization across its economy, part of a broader push to maintain the country’s competitive edge in advanced technologies.