Startups play a crucial role in driving innovation, creating jobs, and contributing to economic growth. Yet, without adequate funding, many promising startup ventures struggle to take off and reach their full potential. 

But, in recent years, the availability of funding options has significantly expanded, opening doors for aspiring entrepreneurs and creating new opportunities for startups.

Understanding this significance, South Korea and Saudi Arabia have now signed a memorandum of understanding to establish a joint fund worth $160 million to improve startup support and investment cooperation.

The joint fund was established by investing $10 million in an existing fund worth $150 million, with Saudi Arabia as the major investor. An additional $160 million was raised, with participation from Saudi Venture Investment (SVC) and Saudi National Wealth Fund (PIF Jada).

The joint fund aims to strengthen bilateral economic ties and create new opportunities for startups and entrepreneurs from both countries. The MOU was entered into in November 2022 when Crown Prince Bin Salman of Saudi Arabia visited Korea.