It is generally accepted that the Korean government plays an important role in supporting private fund-raising and investment in the market. The government has supported the growth of venture capital industry not only by direct capital investment as LPs to funds , but also by the adoption of indirect support through a variety of preferential tax incentives to venture capital activities. That is, the government, as a limited partner, provides financial resources by investing in a VC fund organized by Korean venture capital firms.

Furthermore, the government has organized the fund of funds in line with its efforts not only to supplement private fund-raising and investment, but also to foster entrepreneurial growth firms in Korea.