Korea and Saudi Arabia Weigh Joint Deep-Tech Fund for AI and Semiconductors

Korea and Saudi Arabia explore joint deep‑tech fund targeting AI and semiconductors

South Korea and Saudi Arabia are discussing the creation of a joint deep‑tech investment vehicle that would co‑invest in AI and semiconductor startups, with officials aiming to launch the fund by late 2026. The proposed vehicle is being shaped between Korea Venture Investment Corporation (KVIC) and Riyadh Valley Company (RVC), and was raised during a July 16 meeting in Seoul between Roh Yong‑Seok, Vice Minister and acting minister of Korea's Ministry of SMEs and Startups (MSS), and Abdullah Alswaha, Saudi Arabia's Minister of Communications and Information Technology.

“The ministry would actively support more practical exchange—from launching the joint fund to driving investment and helping companies enter each other's markets,” Roh said following the meeting, signaling Korean intent to back the initiative with policy and facilitation.

Discussions focused on three main tracks: SME AI and digital transformation (AX and DX), venture investment and the putative joint fund, and startup growth and overseas expansion. On the investment front, both sides compared the structure to Korea’s existing Fund of Funds, a government policy vehicle managed by KVIC, which was established in 2005 and serves as an anchor for much of Korea’s venture ecosystem.

• Partners: Korea Venture Investment Corporation (KVIC) and Riyadh Valley Company (RVC).
• Target sectors: AI and semiconductors, alongside other deep‑tech areas.
• Timeline: Officials are seeking to launch the fund before year‑end and to have active co‑investment by late 2026.

RVC, founded in 2010 as the investment arm of King Saud University and active in venture capital and strategic projects aligned with Saudi Vision 2030, already counts Abdullah Alswaha among its board members. Roh specifically asked Alswaha for assistance in launching the fund within the stated timeframe.

The meeting also highlighted trade and market rationale for closer tech cooperation. Roh described Saudi Arabia as “one of the largest markets for Korean SME exports in the Middle East,” noting that Korean SME exports to Saudi Arabia reached roughly $270 million in the first quarter of 2026, representing 21.1 percent of exports to the 20 Middle Eastern countries tracked.

Beyond capital, the agenda touched on SME digital transformation and Korea’s domestic policy direction. Roh outlined a planned law to accelerate AI adoption among SMEs and invited Saudi interest and investment in Korean companies working in AI and other frontier fields. He also extended an open invitation to Saudi officials, investors and founders to participate in COMEUP, Korea’s flagship startup event scheduled for December 9–11, 2026.

KVIC’s growing international footprint — including participation in the K‑Global Star Meetup in Riyadh in February 2026 and Korea’s Global Business Center (GBC) established in Riyadh in 2023 — suggests the proposed joint fund would be a continuation of deeper, institution‑level ties rather than an isolated deal. Officials framed the vehicle as a mechanism to accelerate cross‑border investment, support startup expansion into each market, and direct capital into strategic technology areas such as semiconductors and AI.

Outlook: With high‑level backing on both sides and concrete institutions already engaged, the planned KVIC‑RVC fund could become a significant channel for Korea‑Saudi co‑investment in deep tech by late 2026. Key next steps include finalizing the fund structure, committing initial capital allocations, and aligning regulatory or legal measures to facilitate cross‑border investment and SME digital adoption.