South Korean gaming giant Krafton, in collaboration with tech leader Naver and financial powerhouse Mirae Asset, has announced a monumental $666 million investment fund targeting Asia, with a primary focus on India’s burgeoning tech sector.
This strategic move, revealed on December 19, 2025, underscores South Korea’s growing economic ties with India, as the trio aims to diversify beyond gaming into a broader spectrum of innovative startups.
Unveiling a New Era for India’s Tech Landscape
The fund, set to commence operations in 2026 with an initial capital of $333 million, is poised to fuel technological innovation in one of the world’s fastest-growing digital markets.
India, with its vast pool of talent and rapidly expanding startup ecosystem, has become a hotspot for global investors seeking high-growth opportunities.
Historical Context: South Korea’s Deepening Footprint in India
Historically, South Korea’s investment in India has been significant, with cumulative foreign direct investment reaching approximately $6.8 billion by mid-2025, reflecting Seoul’s intent to diversify supply chains away from traditional markets like China.
Krafton, best known for its global hit PUBG and Battlegrounds Mobile India, has already made substantial inroads in the Indian gaming industry, navigating challenges like the ban on real-money gaming while committing to further investments.
Impact on India’s Startup Ecosystem
This new fund is expected to have a transformative impact, providing much-needed capital to early-stage tech startups in sectors beyond gaming, such as fintech, edtech, and AI.
By partnering with Naver, a leader in web platforms, and Mirae Asset, a titan in financial services, Krafton ensures a diversified approach to identifying and nurturing high-potential ventures.
Looking Ahead: Future Prospects and Challenges
Looking to the future, the fund could catalyze India’s position as a global tech hub, potentially creating thousands of jobs and fostering innovation on an unprecedented scale.
However, challenges such as regulatory hurdles and market competition remain, requiring strategic navigation to maximize the fund’s impact.
As South Korea strengthens its economic foothold in South Asia, this landmark initiative signals a promising synergy between two dynamic economies, with India at the heart of this collaboration.
Alfred Lee
