$7.3M Korea-Japan Fund Kickstarts Jeju Tech With AI Startup Bet

For allocators tracking niche emerging-market venture plays, the $7.3 million Startup Korea Korea-Japan Jeju Fund offers a fresh blueprint: diaspora capital targeting the ‘Valley of Death’ in underserved regions, with a gateway to Japanese and Southeast Asian markets. Its first check into AI-based 3D content creator Seropim demonstrates how blended public-private structures can de-risk early-stage bets in locales that traditional venture has overlooked.

Jeju Island, long known for its volcanic landscapes and honeymoon tourism, is engineering a pivot toward high-tech entrepreneurship, and a newly unveiled cross-border venture fund could prove pivotal. On Friday, July 24, 2026, provincial authorities announced that the Startup Korea Korea-Japan Jeju Fund—a 10.1 billion won ($7.3 million) vehicle jointly backed by Korean capital, local enterprises, and Japan-based ethnic Korean investors—has deployed its debut investment. The recipient is Seropim, an artificial intelligence startup specializing in 3D content creation tools for the global media and gaming markets. The move marks not just a milestone for Jeju but a novel template for diaspora-driven capital flowing into regional innovation ecosystems across Northeast Asia.

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Managed jointly by the Jeju Center for Creative Economy and Innovation and Sevenstar Partners, the fund underwent a rigorous selection process that included more than 15 investor pitch sessions and detailed financial audits before choosing Seropim.

Structured around the chronic capital gaps faced by startups outside greater Seoul, the fund was explicitly designed to bridge the so-called "Valley of Death"—the precarious phase between early prototype and commercial viability. Managed jointly by the Jeju Center for Creative Economy and Innovation and Sevenstar Partners, the fund underwent a rigorous selection process that included more than 15 investor pitch sessions and detailed financial audits before choosing Seropim. The startup's focus on AI-driven 3D creation aligns with global media trends, giving the fund an immediate foothold in a high-growth vertical while signaling to other deep-tech entrepreneurs that Jeju can be launchpad, not just a scenic retreat.

The debut investment is only the most visible part of a broader provincial campaign. In parallel, the Jeju government injected direct seed funding into three other local startups: Momkkot Inc., developer of AI-integrated smart greenhouse equipment; Itnew Inc., an AI-powered logistics platform; and Cross Combine Inc., a platform helping lifestyle brands expand internationally. This two-tier approach—a professionally managed cross-border fund for Scale-up candidates, plus government seed grants for early-stage ventures—reflects an increasingly sophisticated strategy to nurture a self-sustaining startup ecosystem on the island. It also addresses a perennial fear among regional policymakers: that without proactive intervention, promising companies will either relocate to Seoul or perish for lack of capital.

The broader geopolitical backdrop makes the Korea-Japan angle especially significant. Although diplomatic relations have historically fluctuated, the participation of ethnic Korean investors based in Japan—often referred to as members of the "Zainichi" community—adds a layer of diaspora finance that could de-risk future cross-border partnerships. Kim Nam-jin, director of Jeju Province's Innovation Industry Bureau, called the inflow of cross-border capital a "critical milestone" and spoke of building a "virtuous cycle of investment and growth" that extends beyond the island to Southeast Asian markets. That ambition is no empty rhetoric: the fund’s mandate explicitly includes bridging to Japan and Southeast Asia, potentially giving Jeju’s startups preferential access to regional distribution channels and follow-on investors.