Key Takeaways
- • South Gyeongsang Province selected two venture capital partnerships to manage the "Gyeongnam-KDB Regional Innovation Venture Fund," totaling 46.9 billion won, expanding the province's backed fund portfolio to 32 funds worth over 810 billion won once formed by year-end 2026.
- • The selected fund managers are the "Gyeongnam Regional Innovation Next Unicorn Investment Partnership" (jointly managed by BTB Ventures and Pacific Capital) and the "Golden Oak Gyeongnam Regional Innovation Investment Fund No. 1" (managed by Golden Oak Ventures), both expected to complete formation through investor recruitment within 2026.
- • Gyeongnam's registered venture capital firm ecosystem expanded from one firm (Gyeongnam Venture Investment) to three in 2026, with the addition of BTB Ventures and G Square Invest, positioning the region to reduce local companies' dependence on metropolitan investment institutions.
- • The province anticipates the new VC infrastructure will establish an integrated support system spanning company identification, consulting, follow-on investment, and post-management services, addressing a structural gap where local startups previously required direct engagement with Seoul-based investment firms.
Summary
South Gyeongsang Province has accelerated its venture capital ecosystem development by selecting two fund management partnerships to oversee the "Gyeongnam-KDB Regional Innovation Venture Fund," according to an announcement on August 7, 2026. The two funds—totaling 46.9 billion won in capital—represent a significant expansion of the province's regional innovation financing infrastructure, which currently operates 30 backed funds worth more than 770 billion won. Upon completion of formation procedures within 2026, the province's total backed fund portfolio will reach 32 funds with combined capital exceeding 810 billion won.
The selected fund managers bring distinct strategic capabilities to the initiative. BTB Ventures, a Changwon-headquartered regional venture capital firm, will co-manage the "Gyeongnam Regional Innovation Next Unicorn Investment Partnership" in partnership with Pacific Capital. This joint arrangement is designed to strengthen region-focused investment support by leveraging Pacific Capital's connections to metropolitan investment institutions, creating a pipeline for both initial identification of local companies and attraction of follow-on capital. Golden Oak Ventures will independently manage the "Golden Oak Gyeongnam Regional Innovation Investment Fund No. 1," diversifying the province's fund management approach.
A critical development underlying this expansion is the growth of Gyeongnam's venture capital ecosystem itself. The number of VC firms headquartered in the province and registered with the Ministry of SMEs and Startups increased from one company—Gyeongnam Venture Investment—to three in 2026, with BTB Ventures and G Square Invest joining the registered base. This institutional consolidation directly addresses a structural inefficiency: local startups and venture companies previously faced elevated transaction costs and logistical burdens in seeking investment support, requiring in-person engagement with metropolitan firms concentrated in Seoul. The expanded local VC presence aims to establish a comprehensive support architecture spanning company identification, consulting services, follow-on investment facilitation, and post-investment management, reducing friction in capital allocation and enabling more efficient deployment into Gyeongnam's key and future industries.
The selected fund managers bring distinct strategic capabilities to the initiative. BTB Ventures, a Changwon-headquartered regional venture capital firm, will co-manage the "Gyeongnam Regional Innovation Next Unicorn Investment Partnership" in partnership with Pacific Capital. This joint arrangement is designed to strengthen region-focused investment support by leveraging Pacific Capital's connections to metropolitan investment institutions, creating a pipeline for both initial identification of local companies and attraction of follow-on capital. Golden Oak Ventures will independently manage the "Golden Oak Gyeongnam Regional Innovation Investment Fund No. 1," diversifying the province's fund management approach.
A critical development underlying this expansion is the growth of Gyeongnam's venture capital ecosystem itself. The number of VC firms headquartered in the province and registered with the Ministry of SMEs and Startups increased from one company—Gyeongnam Venture Investment—to three in 2026, with BTB Ventures and G Square Invest joining the registered base. This institutional consolidation directly addresses a structural inefficiency: local startups and venture companies previously faced elevated transaction costs and logistical burdens in seeking investment support, requiring in-person engagement with metropolitan firms concentrated in Seoul. The expanded local VC presence aims to establish a comprehensive support architecture spanning company identification, consulting services, follow-on investment facilitation, and post-investment management, reducing friction in capital allocation and enabling more efficient deployment into Gyeongnam's key and future industries.
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