Ministry of SMEs and Startups Establishes 'Non-Face-to-Face Economy Division'..."First Among Government Ministries"

Park Young-sun, Minister of SMEs and Startups

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 21st that it will establish and operate the 'Non-face-to-face Economy Division,' the first government ministry division dedicated to fostering venture and startup companies in the non-face-to-face sector after the COVID-19 pandemic.

The Non-face-to-face Economy Division will be composed of seven personnel and is scheduled to begin operations on the 25th. It will be established directly under the Deputy Minister of the Ministry of SMEs and Startups and will operate as an emergency response team for six months (extendable by six months if necessary, up to a maximum of one year).

The Ministry plans to establish and support a comprehensive strategy to revitalize the non-face-to-face sector, including venture investment and startup activation in the non-face-to-face field, as well as fostering local creators through the digitization of natural, cultural, and historical materials.

According to the Ministry's own survey, while total new venture investment in the first quarter of this year decreased by 4.2% compared to the same period last year, venture investment in non-face-to-face sectors such as smart healthcare increased by 21.7% year-on-year.

Additionally, the average employment of venture investment companies in the non-face-to-face sector was 37.8 employees, higher than the 27.2 employees in the face-to-face sector. Employment per 1 billion KRW of venture investment was also higher in the non-face-to-face sector at 5.5 employees compared to 3.6 employees in the face-to-face sector, indicating a greater employment creation effect relative to investment.

Minister Park Young-sun of the Ministry of SMEs and Startups stated, "The ecosystem in the non-face-to-face sector, which has gained attention after COVID-19, is led not by companies in existing foundational industries but by innovative ventures and startups. Through initiatives such as the K-Unicorn Project and the Smart Korea Fund, the Ministry will serve as a control tower to enable innovative ventures and startups to become the main force and leap forward as a leading digital powerhouse in the world."

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