E-commerce giant Coupang has committed ₩75 billion ($53.98 million) to Korea’s Alpha Korea Sovereign AI Fund, part of the government’s Next Unicorn Project designed to cultivate artificial intelligence startups into billion-dollar companies.
The investment creates a ₩150 billion ($108 million) fund, with matching capital from the state-backed Fund of Funds and venture firm SBVA serving as general partner. The fund plans to distribute more than ₩10 billion ($7.2 million) on average to 14 AI startups and growth companies.
The move represents a notable shift for Coupang, which has historically focused on its core e-commerce and logistics operations rather than external investments. As Korea’s first unicorn company to reach NASDAQ, Coupang’s participation carries symbolic weight in the government’s broader initiative.
Korea’s AI investment surged 75% year-over-year in 2024, surpassing ₩1 trillion ($769 million) for the first time, according to government data. The Next Unicorn Project represents part of a ₩600 billion ($430 million) commitment across 15 selected fund managers, signaling the country’s aggressive push to compete globally in artificial intelligence.
However, questions remain about returns on such government-directed investments. Korea’s Pre-Unicorn program has produced eight unicorns since 2019 from 126 supported companies – a conversion rate that some critics view as modest given the substantial public funding involved.
The fund requires participants to invest at least 30% of capital in startups that have participated in government programs and achieved measurable results.
