1.45 Trillion Won Support for 'Startup'... Largest Ever

[Asia Economy Reporter Eun-gyeol Lee] The government will allocate 1.4517 trillion KRW this year to support startups. This is a record high, representing a 29.8% (333.6 billion KRW) increase compared to last year's startup support budget of 1.1181 trillion KRW.

The Ministry of SMEs and Startups announced on the 2nd that in 2020, 16 ministries will invest a total of 1.4517 trillion KRW in the startup sector through 90 projects. Newly established or additional projects this year include ▲ the Ministry of SMEs and Startups' Innovation Startup Package (45 billion KRW) to lay the foundation for the 4th Industrial Revolution ▲ the Rural Development Administration's R&D support for agricultural practical technology to increase sales and create jobs in agricultural enterprises (11.6 billion KRW) ▲ the Ministry of Justice's Startup Immigration Talent Development Program (800 million KRW), among 21 projects.

By ministry, the Ministry of SMEs and Startups, which is responsible for startups and startups, accounted for the largest share with 87% of the budget. The Ministry's startup support budget increased by 263.5 billion KRW from 997.6 billion KRW last year to 1.2611 trillion KRW this year. Next, the Ministry of Science and ICT's startup budget increased from 15.2 billion KRW last year to 48.9 billion KRW this year. By support type, the distribution was startup commercialization (50.4%), research and development (35.3%), facility and space provision (8.7%), startup education (3.7%), and mentoring (1.5%). Startup commercialization support is a key focus, increasing by 218.4 billion KRW from 513.1 billion KRW last year to 731.5 billion KRW this year.

This year, the Ministry of SMEs and Startups plans to focus on startup commercialization support and facility and space creation projects for startups. To revitalize startups, the eligibility for the preliminary startup package will be expanded to include those who have not yet started a business, and the target age group will be extended to middle-aged and older individuals to promote technology startups by retired personnel. Based on the successful 'Changgu Program' in collaboration with Google, the Startup Leap Package will be strengthened to expand connections with global companies in manufacturing, distribution, and logistics sectors.

The 'TIPS Program,' where the government provides follow-up support after private sector selection and investment, will be segmented, and support for in-house venture development will be increased. To foster specialized industries by region, the Youth Startup Academy will strengthen its function to train manufacturing startup founders by industry, and a Global Startup Academy will be newly established. Local creators who create new value by combining regional characteristics and innovative business models will also be discovered. For companies in new industries such as the innovation Big 3 (system semiconductors, bio-health, future cars), technology startups will be intensively supported, and promising startups in the materials, parts, and equipment sectors will be discovered and nurtured.

Facilities, spaces, and platforms for startups will also increase. This year, 64 maker spaces where anyone can engage in creative activities will be established nationwide, expanding to 360 by 2022. Overseas, the Korea Startup Center (KSC) will be expanded. To promote the globalization of startups and build networks based on the advanced startup environments of Northern Europe, new KSCs will open this year in Sweden and Finland.

The startup festival 'ComeUp,' first held last year, is expected to be more diverse this year. The theme of ComeUp 2020 is set as Artificial Intelligence (AI), and the main event will include the 'AI Olympics,' expanding technical sessions. The Ministry of SMEs and Startups plans to attract global startups in the AI field through ComeUp.

Detailed information about startup support projects can be found on the government startup information portal system, as well as on the Ministry of SMEs and Startups website and the Korea Institute of Startup & Entrepreneurship Development website. Inquiries can also be made through the Small and Medium Business Integrated Call Center.

This content was produced with the assistance of AI translation services.