FinancialMediaGuide reports that South Korean companies are taking a decisive step to expand their presence in the Indian market. In collaboration with Mirae Asset and Naver, Krafton has announced the launch of a new investment fund worth $666 million. This fund will focus on supporting startups in India, with an emphasis on high-tech industries such as artificial intelligence, fintech, mobile applications, and other innovative sectors. The fund is expected to begin operations in 2026, with an initial capitalization of $333 million and the potential for further growth.
For South Korea, this is an important step in its long-term strategy to strengthen its economic presence in India. The Indian market continues to attract international investors due to its rapidly growing sectors, especially in digital technologies. At FinancialMediaGuide, we believe that for South Korean companies, this fund will not only serve as a means of diversifying investments but also as a platform for strengthening their positions in the high-tech sector, which is crucial in the context of global competition.
Krafton, with its flagship game Battlegrounds Mobile India (BGMI), has already shown its ambitions in India, despite regulatory challenges. In 2020, the Indian government banned PUBG, previously developed by the company, citing data security threats. Despite this, Krafton continues to actively develop its projects in the country, as evidenced by the multi-million user base of BGMI. At FinancialMediaGuide, we see this as an example of how the company adapts to changes and continues to operate in an important market despite challenges.
Moreover, the creation of the $666 million fund could act as a catalyst for further growth of tech startups in India, where the number of mobile users and internet penetration continue to rise. The Indian market remains one of the fastest-growing in Asia, and its attractiveness to investors is confirmed by figures: in 2023 alone, over $10 billion was invested in India’s tech sector.
In light of these trends, we at FinancialMediaGuide emphasize the importance of diversifying investment strategies for companies operating in India. South Korea’s aim to reduce dependency on China and enhance its role in South Asia may play a decisive role in long-term economic stability for both Korean companies and India. Amid global economic challenges and growing competition in high-tech markets, strategic investments in India could become a key factor for sustainable growth and development.
We at FinancialMediaGuide predict that in the future, South Korea will continue to increase its investments in India’s tech sector. However, it is important to note that the diversification process must take into account local regulatory risks and data security concerns. Therefore, for successful entry into the Indian market, companies must be prepared for changes in legislation and adapt flexibly to new conditions.
Financial Media Guide believes that the Indian market provides unique opportunities for startups and companies in the tech sector, and South Korean companies are actively aiming to capitalize on these prospects. However, success will require not only capital but also the ability to quickly adapt to changes in the political and economic landscape of the region.
