Six major VCs, including Sequoia and a16z, signed MOU with Korea National Pension Fund to increase investment in strategic industries such as AI

Comparatively, according to Korean media Asiae, six leading Silicon Valley venture capital firms, Sequoia Capital, a16z, Khosla Ventures, Lightspeed Venture Partners, General Catalyst, and NEA, announced that they have signed a Memorandum of Strategic Investment Cooperation (MOU) with the Korea National Pension Fund (NPS) to jointly explore investment opportunities, share investment information, and strengthen the global venture capital layout.

Continuing, the Korean government is speeding up the policy of attracting overseas venture capital, and has launched a “National Growth Fund” with a combined scale of 200 trillion won. The market expects the Korean venture capital sector to see simultaneous inflows of policy capital, private capital, and overseas capital, and strategic industries such as AI and semiconductors are expected to receive more investment. However, investment industry insiders warn that if a large amount of capital flows to a few popular companies, or pushes up corporate valuations and forms a bubble, future IPOs and M&A withdrawals may face valuation pullback pressure, affecting fund returns.