Last October was a particularly meaningful month. Clobot Co., Ltd., in which I made an early-stage investment in 2018, not only went public on the KOSDAQ market in October 2024, but also surpassed a market capitalization of KRW 1 trillion in October 2025. As artificial intelligence technology converges with robotics as hardware, software that controls and orchestrates robotic activities has ultimately become more important—and Clobot, which develops such software, has been highly valued by the market. For a company that began as a small technology startup to succeed in an IPO and gain broad market recognition is a source of great pride for me, both as a patent attorney who shared in its early journey and as a former shareholder. In this column, I would like to share some thoughts on the three joys of early-stage and angel investing.
The Joy of Returns
Early-stage startup investing is a representative high-risk, high-return investment, in which investors enter at a low company valuation and seek to realize substantial returns through subsequent explosive growth. In terms of the possibility of losing the entire principal, it is at least as risky as investing in the KOSPI or KOSDAQ markets, and in that shares cannot be sold at a desired time or price, it is even less favorable than investing in publicly listed stocks. In the early-stage investment market, there is no such thing as a “stable company,” and, of course, there is virtually no possibility of a “stable investment.” The target company will often have fewer than ten employees, and it is entirely normal for it to have no immediate revenue.
Angel investing involves deploying capital at a stage when company valuations are extremely low, thereby creating opportunities for exits that may yield returns of tens or even hundreds of times the original investment. Ironically, at the angel-investment stage, not focusing on the rate of return often turns out to be the very way to achieve strong returns. Over the past eight years, while operating six personal investment associations, I have repeatedly observed that angel investors who invest with the mindset of “donating a small amount of my money to support that innovator” tend to achieve better outcomes.
There are many blockbuster success stories of early-stage investments in Korea as well. Woowa Brothers Corp., the company behind the food delivery platform Baedal Minjok, received an investment of approximately KRW 300 million from Bon Angels in 2011, when its initial valuation was around KRW 1.5 billion. In 2019, the company was acquired by Germany’s Delivery Hero for approximately KRW 4.7 trillion.
Following the outbreak of the COVID-19 pandemic, the food delivery platform market entered a period of rapid expansion, and by 2022 Woowa Brothers was estimated to have a valuation of approximately KRW 15 trillion. In effect, the company’s valuation increased by nearly 10,000 times over a period of about ten years.
Similarly, Dunamu Inc., the company that created the cryptocurrency exchange Upbit, received an investment of KRW 200 million from Kakao Ventures in 2013, at a valuation of approximately KRW 1 billion. At that time, Dunamu was a small development company that, as of 2016, recorded revenues of KRW 1.5 billion and a net loss of KRW 2.1 billion. However, the company’s valuation surged dramatically after the launch of Upbit in 2017.
Meanwhile, discussions are currently underway regarding a potential merger between Dunamu and Naver Finance, and the company is being valued at approximately KRW 15 trillion. Once again, rapid growth across an entire industry—something that was difficult to predict at the time of the initial investment—resulted in an extraordinary increase in valuation of roughly 15,000 times.
Semiconductor materials and components companies also often achieve substantial multiples. FuriosaAI, a server-class AI semiconductor startup based on NPU (Neural Processing Unit) technology, likewise attracted investments from DSC Investment, NAVER D²SF, and others in 2017, at an enterprise valuation of approximately KRW 2.8 billion. Possessing advanced capabilities in designing high-performance, high-efficiency AI semiconductors, FuriosaAI independently designed NPUs—non-memory semiconductors optimized for deep-learning workloads—to replace conventional AI computing environments that had relied heavily on GPUs. More recently, the company raised approximately KRW 170 billion in investment and was recognized with a valuation of around KRW 1 trillion. This represents a successful deep-tech investment case with a return multiple of roughly 357 times
The Joy of Tax Savings
The second joy relates to taxation. In Korea, targeted support policies provide both income deductions and tax credits. Because such tax incentives can favor only certain taxpayers, they are administered with great caution; however, with respect to angel investing, the government has consistently maintained particularly strong tax incentives. In particular, individuals who join a personal investment association as members and make capital contributions as “angel investors” are granted favorable treatment in the calculation of comprehensive income tax.
Funds contributed to a personal investment association and invested in venture companies and the like are eligible for income deductions, with the applicable deduction rate varying depending on the amount invested. For investments of up to KRW 30 million, 100% of the amount is deductible; for the portion exceeding KRW 30 million and up to KRW 50 million, a 70% deduction applies; and for any amount exceeding KRW 50 million, a 30% deduction rate is applied. Although the tax law provisions may seem complex at first glance, they become much easier to understand when illustrated with an example. If a person with an annual income of KRW 300 million contributes KRW 100 million to a personal investment association, and that amount is invested in companies that satisfy the requirements for income deductions, the calculation is made by dividing the amount as follows.
Of the KRW 100 million invested, KRW 30 million falls within the 100% deduction bracket, the additional KRW 20 million falls within the 70% deduction bracket, resulting in a deductible amount of KRW 14 million, and the remaining KRW 50 million, which exceeds the KRW 50 million threshold, is subject to the 30% deduction bracket. Accordingly, the total deductible amount in this example is KRW 59 million.
Because the comprehensive income tax rate for an individual with an annual income of KRW 300 million is 41.8%, the resulting reduction in tax liability (i.e., the tax refund) amounts to approximately KRW 24.66 million. While the actual amount may vary depending on other applicable deduction conditions, the key point is that although KRW 100 million is a substantial sum and angel investing is inherently high-risk, it offers an attractive opportunity for significant “lawful tax savings,” in that a portion of what would otherwise be paid as taxes can instead be invested in venture companies while simultaneously acquiring equity.
The amount of the tax refund varies depending on the tax base. As is the case in other countries, Korea’s comprehensive income tax rates differ according to income level. The key point here is that even when the same amount is eligible for an income deduction, the final “refund amount” differs depending on the comprehensive income tax rate applicable to the individual’s income bracket. This is because income deductions adjust the tax base (the amount on which tax is calculated), and the tax is refunded at the rate that applies to the reduced tax base.
For example, if Mr. Kim Bong-sik, a salaried employee with an annual income of KRW 120 million, invests KRW 30 million by becoming a member of a personal investment association operated by an accelerator, the outcome may be as follows.
This scenario assumes that there are no personal deductions other than for the taxpayer himself, that only the four major social insurance contributions are taken into account, and that deductions for credit card spending, medical expenses, education expenses, and the like are excluded. Under these assumptions, Mr. Kim Bong-sik’s tax base falls to KRW 88 million or below, resulting in a change in the final tax amount payable.
Although the calculation may not be exact, as there are various other factors that can affect tax liability, it can be seen that investing KRW 30 million as an angel investment leads to an estimated tax savings of approximately KRW 8.06 million.
Meanwhile, let us examine the tax-saving effect (i.e., the tax refund) when angel investors in different income brackets contribute KRW 10 million to a personal investment association and that amount is invested in venture companies, thereby qualifying for an income deduction. An investor in the income bracket with annual income of KRW 88 million or less (tax rate: 26.4%) would receive a refund of KRW 2.64 million, which corresponds to 26.4% of the KRW 10 million investment. An investor in the bracket exceeding KRW 88 million in annual income (tax rate: 38.5%) would receive a refund of KRW 3.85 million, or 38.5% of the KRW 10 million investment.
Likewise, an investor in the income bracket exceeding KRW 150 million in annual income (tax rate: 41.8%) would receive a refund of KRW 4.18 million, equivalent to 41.8% of the KRW 10 million investment. Although the same KRW 10 million qualifies for an income deduction in each case, the actual tax benefit varies depending on the investor’s income bracket.
Of course, income deductions are available only up to a limit of 50% of the comprehensive income for the relevant taxable year. As a general rule, the full amount is deductible in the taxable year in which the “investment date”—the date on which the funds contributed to the personal investment association are invested in a venture company—falls.
However, if the investor so chooses, by submitting an application to change the timing of the income deduction, the investor may select one taxable year out of the three-year period ending in the year that is two years from the investment date in which to claim the deduction. For example, if an investor contributes KRW 30 million to a personal investment association in 2025 and the association makes an investment in a venture company (Company A) in 2026, the investor may choose to claim the deduction in 2026, 2027, or 2028. One important point to note is that if the investor recovers the invested equity within three years from the investment date after having already received the income deduction benefit, the previously deducted tax amount may have to be paid back.
The Joy of Learning
Angel investing is difficult to pursue alone. The administrative aspects involving commercial law are complex, and evaluating business potential from a technical perspective is equally challenging. In many cases, investors transfer funds without fully understanding whether the payment constitutes a capital contribution for newly issued shares or an acquisition of existing shares from current shareholders. Even verifying on one’s own whether one’s name has been properly entered in the shareholder registry is not an easy task.
From this perspective, personal investment associations operated by accelerators can be considered safer than individual angel investing. Such associations are reported to the Ministry of SMEs and Startups, governed by formal association bylaws, subject to audits by accounting firms, and supported in tax-related procedures. In addition, many accelerators and angel clubs regularly gather to listen to founders’ presentations and to engage in learning through various seminars.
Recently, BLT & Partners Co., Ltd. (bnp.ac), an accelerator registered with the Ministry of SMEs and Startups, has also been hosting monthly seminars on promising future companies, technologies, and industries, while providing networking events for its association members. By participating in these seminars and study sessions, investors can deepen their understanding of early-stage startup investing and gain valuable insights into future business opportunities. Networking with people from diverse fields is an added benefit.
Having operated BLT Patent & Law Firm for the past 13 years and worked alongside more than 3,000 entrepreneurs, founders, and inventors as clients in matters such as patent and trademark filings, I have come to realize that both the members of BLT and our clients—business leaders—are ultimately people who study and prepare for the “future.” What may constitute serious hardship for some can become a business opportunity for others, and capital is required to turn such opportunities into successful ventures.
While angel investing may not provide financial support on the same scale as an initial public offering (IPO), it can nevertheless be of great help to founders at the very beginning of their journey. After all, even the most “extraordinary businesses” exist today because someone supported and encouraged them at their starting point. Angel investors are those who, together with founders, help create new engines of growth for the nation. In 2026, why not experience the joys of angel investing together?
Jeonghan Uhm
Partner Patent Attorney at BLT Patent & Law Firm: www.en.blt.kr
#AngelInvestment #EarlyStageInvestment #StartupInvestment #IPOSuccess #ExitStrategy #ProfitDrivenInvestment #VentureInvestment #DeepTechInvestment #AIStartups #RoboticsInvestment #GrowthStocks #InvestmentSuccess #AngelClub #FutureValue #InvestmentPerformance #IntellectualProperty #PatentLawFirm #PatentAttorney
Last October was a particularly meaningful month. Clobot Co., Ltd., in which I made an early-stage investment in 2018, not only went public on the KOSDAQ market in October 2024, but also surpassed a market capitalization of KRW 1 trillion in October 2025. As artificial intelligence technology converges with robotics as hardware, software that controls and orchestrates robotic activities has ultimately become more important—and Clobot, which develops such software, has been highly valued by the market. For a company that began as a small technology startup to succeed in an IPO and gain broad market recognition is a source of great pride for me, both as a patent attorney who shared in its early journey and as a former shareholder. In this column, I would like to share some thoughts on the three joys of early-stage and angel investing.
The Joy of Returns
Early-stage startup investing is a representative high-risk, high-return investment, in which investors enter at a low company valuation and seek to realize substantial returns through subsequent explosive growth. In terms of the possibility of losing the entire principal, it is at least as risky as investing in the KOSPI or KOSDAQ markets, and in that shares cannot be sold at a desired time or price, it is even less favorable than investing in publicly listed stocks. In the early-stage investment market, there is no such thing as a “stable company,” and, of course, there is virtually no possibility of a “stable investment.” The target company will often have fewer than ten employees, and it is entirely normal for it to have no immediate revenue.
Angel investing involves deploying capital at a stage when company valuations are extremely low, thereby creating opportunities for exits that may yield returns of tens or even hundreds of times the original investment. Ironically, at the angel-investment stage, not focusing on the rate of return often turns out to be the very way to achieve strong returns. Over the past eight years, while operating six personal investment associations, I have repeatedly observed that angel investors who invest with the mindset of “donating a small amount of my money to support that innovator” tend to achieve better outcomes.
There are many blockbuster success stories of early-stage investments in Korea as well. Woowa Brothers Corp., the company behind the food delivery platform Baedal Minjok, received an investment of approximately KRW 300 million from Bon Angels in 2011, when its initial valuation was around KRW 1.5 billion. In 2019, the company was acquired by Germany’s Delivery Hero for approximately KRW 4.7 trillion.
Following the outbreak of the COVID-19 pandemic, the food delivery platform market entered a period of rapid expansion, and by 2022 Woowa Brothers was estimated to have a valuation of approximately KRW 15 trillion. In effect, the company’s valuation increased by nearly 10,000 times over a period of about ten years.
Similarly, Dunamu Inc., the company that created the cryptocurrency exchange Upbit, received an investment of KRW 200 million from Kakao Ventures in 2013, at a valuation of approximately KRW 1 billion. At that time, Dunamu was a small development company that, as of 2016, recorded revenues of KRW 1.5 billion and a net loss of KRW 2.1 billion. However, the company’s valuation surged dramatically after the launch of Upbit in 2017.
Meanwhile, discussions are currently underway regarding a potential merger between Dunamu and Naver Finance, and the company is being valued at approximately KRW 15 trillion. Once again, rapid growth across an entire industry—something that was difficult to predict at the time of the initial investment—resulted in an extraordinary increase in valuation of roughly 15,000 times.
Semiconductor materials and components companies also often achieve substantial multiples. FuriosaAI, a server-class AI semiconductor startup based on NPU (Neural Processing Unit) technology, likewise attracted investments from DSC Investment, NAVER D²SF, and others in 2017, at an enterprise valuation of approximately KRW 2.8 billion. Possessing advanced capabilities in designing high-performance, high-efficiency AI semiconductors, FuriosaAI independently designed NPUs—non-memory semiconductors optimized for deep-learning workloads—to replace conventional AI computing environments that had relied heavily on GPUs. More recently, the company raised approximately KRW 170 billion in investment and was recognized with a valuation of around KRW 1 trillion. This represents a successful deep-tech investment case with a return multiple of roughly 357 times
The Joy of Tax Savings
The second joy relates to taxation. In Korea, targeted support policies provide both income deductions and tax credits. Because such tax incentives can favor only certain taxpayers, they are administered with great caution; however, with respect to angel investing, the government has consistently maintained particularly strong tax incentives. In particular, individuals who join a personal investment association as members and make capital contributions as “angel investors” are granted favorable treatment in the calculation of comprehensive income tax.
Funds contributed to a personal investment association and invested in venture companies and the like are eligible for income deductions, with the applicable deduction rate varying depending on the amount invested. For investments of up to KRW 30 million, 100% of the amount is deductible; for the portion exceeding KRW 30 million and up to KRW 50 million, a 70% deduction applies; and for any amount exceeding KRW 50 million, a 30% deduction rate is applied. Although the tax law provisions may seem complex at first glance, they become much easier to understand when illustrated with an example. If a person with an annual income of KRW 300 million contributes KRW 100 million to a personal investment association, and that amount is invested in companies that satisfy the requirements for income deductions, the calculation is made by dividing the amount as follows.
Of the KRW 100 million invested, KRW 30 million falls within the 100% deduction bracket, the additional KRW 20 million falls within the 70% deduction bracket, resulting in a deductible amount of KRW 14 million, and the remaining KRW 50 million, which exceeds the KRW 50 million threshold, is subject to the 30% deduction bracket. Accordingly, the total deductible amount in this example is KRW 59 million.
Because the comprehensive income tax rate for an individual with an annual income of KRW 300 million is 41.8%, the resulting reduction in tax liability (i.e., the tax refund) amounts to approximately KRW 24.66 million. While the actual amount may vary depending on other applicable deduction conditions, the key point is that although KRW 100 million is a substantial sum and angel investing is inherently high-risk, it offers an attractive opportunity for significant “lawful tax savings,” in that a portion of what would otherwise be paid as taxes can instead be invested in venture companies while simultaneously acquiring equity.
The amount of the tax refund varies depending on the tax base. As is the case in other countries, Korea’s comprehensive income tax rates differ according to income level. The key point here is that even when the same amount is eligible for an income deduction, the final “refund amount” differs depending on the comprehensive income tax rate applicable to the individual’s income bracket. This is because income deductions adjust the tax base (the amount on which tax is calculated), and the tax is refunded at the rate that applies to the reduced tax base.
For example, if Mr. Kim Bong-sik, a salaried employee with an annual income of KRW 120 million, invests KRW 30 million by becoming a member of a personal investment association operated by an accelerator, the outcome may be as follows.
This scenario assumes that there are no personal deductions other than for the taxpayer himself, that only the four major social insurance contributions are taken into account, and that deductions for credit card spending, medical expenses, education expenses, and the like are excluded. Under these assumptions, Mr. Kim Bong-sik’s tax base falls to KRW 88 million or below, resulting in a change in the final tax amount payable.
Although the calculation may not be exact, as there are various other factors that can affect tax liability, it can be seen that investing KRW 30 million as an angel investment leads to an estimated tax savings of approximately KRW 8.06 million.
Meanwhile, let us examine the tax-saving effect (i.e., the tax refund) when angel investors in different income brackets contribute KRW 10 million to a personal investment association and that amount is invested in venture companies, thereby qualifying for an income deduction. An investor in the income bracket with annual income of KRW 88 million or less (tax rate: 26.4%) would receive a refund of KRW 2.64 million, which corresponds to 26.4% of the KRW 10 million investment. An investor in the bracket exceeding KRW 88 million in annual income (tax rate: 38.5%) would receive a refund of KRW 3.85 million, or 38.5% of the KRW 10 million investment.
Likewise, an investor in the income bracket exceeding KRW 150 million in annual income (tax rate: 41.8%) would receive a refund of KRW 4.18 million, equivalent to 41.8% of the KRW 10 million investment. Although the same KRW 10 million qualifies for an income deduction in each case, the actual tax benefit varies depending on the investor’s income bracket.
Of course, income deductions are available only up to a limit of 50% of the comprehensive income for the relevant taxable year. As a general rule, the full amount is deductible in the taxable year in which the “investment date”—the date on which the funds contributed to the personal investment association are invested in a venture company—falls.
However, if the investor so chooses, by submitting an application to change the timing of the income deduction, the investor may select one taxable year out of the three-year period ending in the year that is two years from the investment date in which to claim the deduction. For example, if an investor contributes KRW 30 million to a personal investment association in 2025 and the association makes an investment in a venture company (Company A) in 2026, the investor may choose to claim the deduction in 2026, 2027, or 2028. One important point to note is that if the investor recovers the invested equity within three years from the investment date after having already received the income deduction benefit, the previously deducted tax amount may have to be paid back.
The Joy of Learning
Angel investing is difficult to pursue alone. The administrative aspects involving commercial law are complex, and evaluating business potential from a technical perspective is equally challenging. In many cases, investors transfer funds without fully understanding whether the payment constitutes a capital contribution for newly issued shares or an acquisition of existing shares from current shareholders. Even verifying on one’s own whether one’s name has been properly entered in the shareholder registry is not an easy task.
From this perspective, personal investment associations operated by accelerators can be considered safer than individual angel investing. Such associations are reported to the Ministry of SMEs and Startups, governed by formal association bylaws, subject to audits by accounting firms, and supported in tax-related procedures. In addition, many accelerators and angel clubs regularly gather to listen to founders’ presentations and to engage in learning through various seminars.
Recently, BLT & Partners Co., Ltd. (bnp.ac), an accelerator registered with the Ministry of SMEs and Startups, has also been hosting monthly seminars on promising future companies, technologies, and industries, while providing networking events for its association members. By participating in these seminars and study sessions, investors can deepen their understanding of early-stage startup investing and gain valuable insights into future business opportunities. Networking with people from diverse fields is an added benefit.
Having operated BLT Patent & Law Firm for the past 13 years and worked alongside more than 3,000 entrepreneurs, founders, and inventors as clients in matters such as patent and trademark filings, I have come to realize that both the members of BLT and our clients—business leaders—are ultimately people who study and prepare for the “future.” What may constitute serious hardship for some can become a business opportunity for others, and capital is required to turn such opportunities into successful ventures.
While angel investing may not provide financial support on the same scale as an initial public offering (IPO), it can nevertheless be of great help to founders at the very beginning of their journey. After all, even the most “extraordinary businesses” exist today because someone supported and encouraged them at their starting point. Angel investors are those who, together with founders, help create new engines of growth for the nation. In 2026, why not experience the joys of angel investing together?
Jeonghan Uhm
Partner Patent Attorney at BLT Patent & Law Firm: www.en.blt.kr
#AngelInvestment #EarlyStageInvestment #StartupInvestment #IPOSuccess #ExitStrategy #ProfitDrivenInvestment #VentureInvestment #DeepTechInvestment #AIStartups #RoboticsInvestment #GrowthStocks #InvestmentSuccess #AngelClub #FutureValue #InvestmentPerformance #IntellectualProperty #PatentLawFirm #PatentAttorney