(Yonhap Interview) After successful Dunamu exit, Kakao Ventures eyes 300 bln in returns amid renewed global interest in K-startups

Go to Contents Go to Navigation Facebook X More Pinterest Linked in Tumblr Reddit Facebook Messenger Copy URL URL is copied. OK By Kang Jae-eun SEOUL, July 4 (Yonhap) -- In 2013, when Dunamu -- now the operator of South Korea's largest crypto exchange, Upbit -- was a fledgling startup with just three employees, Kakao Ventures saw a diamond in the rough. After making the first 200 million-won (US$129,575) seed investment that year, Kim Ki-jun, the chief executive officer (CEO) of the venture capital (VC) firm, spearheaded two follow-up rounds of investments, in 2015 and 2017, totaling 3.

3 billion won. Thirteen years later, Kakao Ventures and its parent company Kakao Corp. sold a part of their stakes in Dunamu, securing around 2.

2 trillion won from the exit. The returns represent more than a 1,000-fold return for Kakao Ventures alone, Kim said in a recent interview with Yonhap News Agency at the company's headquarters in Pangyo, south of Seoul. "Our efforts to search for and invest in entrepreneurs that continue to change and capture new opportunities …

have reaped great results," the CEO said. "We expect to realize a return of around 300 billion won by year's end." Kim Ki-jun, the CEO of Kakao Ventures, poses for a photo, in this undated file photo provided by the company on July 3, 2026.

(PHOTO NOT FOR SALE) (Yonhap) Established in 2012, Kakao Ventures is a South Korean VC firm that focuses on early-stage startups, with 410 billion won of assets under management as of June. It primarily targets seed and Pre-Series A rounds, and was the first institutional investor in 90 percent of some 300 startups under its house, Kim said. The company has exited a return of around 150 billion won annually over the past five years and expects to sustain the pace in 2027 with a potential listing of Rebellions, a local chip startup valued at around $2.

3 billion. "It is about time to recoup (investments in Rebellions) through an initial public offering (IPO)," Kim said. The nuclear engineer-turned venture capitalist said he is noticing a growing interest in South Korean startups amid the global artificial intelligence (AI) boom.

Limited partners from abroad are requesting Kakao Ventures for startup introductions, or secondary share sales, as they rediscover the country's manufacturing capabilities, backed by conglomerates such as Samsung Electronics, SK hynix Inc. and Hyundai Motor Co., as well as its excellent talent pool, he said.

The local stock rally has bolstered investor confidence too, driving up expectations for successful initial public offering exits, he added. Kim Ki-jun, the CEO of Kakao Ventures, speaks during an interview with Yonhap News Agency in Pangyo, south of Seoul, on July 1, 2026, in this photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap) Against this backdrop, Kakao Ventures is envisioning a new fund of around 100 billion won, nearly triple the size of its previous ones.

The move is intended to facilitate bolder, yet calculated bets on early-stage companies in capital-intensive sectors, such as AI infrastructure and hardware, Kim explained. The VC firm has also been turning its attention abroad since last year, funding Silicon Valley startups in space, robotics and semiconductors. "It is hard to find startups in areas that require ten to 20 years for development, such as space, nuclear technology and neural sciences, if we only look for Korean founders," Kim said.

When asked which sector he thought might be overlooked by foreign investors, Kim pointed to digital healthcare, noting South Korea's ample medical data and startups utilizing them to create new AI services or medical devices. "At the end of the day, we are a venture capital firm, and our existence would be meaningless if we fail to deliver substantial returns on our investments," Kim said. "But we will never let go of our philosophy of finding pioneers that advance the future that the world needs."

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