Government to Establish 1,000 Research Institute Companies Over 5 Years... Fostering 'K-Leading Companies'

Job Committee Approves 'Research Institute Enterprise Innovation Growth Strategy' on 28th
Leading New Industries and Korean New Deal...Fostering Unicorn Companies
Establishing Customized Support System by Stage...350 Billion KRW Invested Over 5 Years

On the 28th, at the 17th Job Committee held at the Press Center in Jung-gu, Seoul, Kim Yong-gi, Vice Chairman of the Job Committee, Lee Jae-gap, Minister of Employment and Labor, and other attendees are saluting the national flag. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kim Bo-kyung] The government announced its goal to establish a cumulative total of 2,000 research institute companies by 2025. The plan aims to lead the 'Korean New Deal' by fostering research institute companies through investments in new industry sectors.

The Presidential Committee on Jobs held its 17th meeting on the 28th at the Korea Press Center with the Ministry of Science and ICT and related ministries, where it approved the 'Research Institute Company Innovation Growth Strategy' containing these details.

A research institute company refers to a company established within a research and development special zone where public research institutions, such as government-funded organizations, transfer technology and hold at least 10% equity. It is a new technology startup model combining the technological capabilities of public research institutions with the capital and management know-how of companies. As of August this year, a total of 1,001 research institute companies have been established.

The government announced plans to continuously expand the founding of research institute companies by establishing an additional 1,000 companies by 2025. Notably, 50% of these will focus on digital-centered startups in new industry sectors that will lead the post-COVID new normal era.

The proportion of promising new industries within the research and development (R&BD) budget linked to the commercialization of research institute companies will be expanded from about 15% this year to 25% by 2025.

The government plans to focus on discovering research institute companies that can enhance technological independence in the materials, parts, and equipment industries and meet the demands of large and medium-sized enterprises. Additionally, it will increase startup investors and regionally-led planned research institute company startups to nurture them into 'unicorn companies' ready to enter the global market.

According to the growth stages of research institute companies, a full-cycle customized support system will be established in the order of 'initial → leap → advancement.' In the initial stage, a capacity-building package program including technology development planning, market research, and marketing will be applied to stabilize companies.

In the leap stage, which covers 2 to 5 years after establishment, companies will receive 'leap funds' supporting up to 250 million KRW per year for up to 2 years to enhance competitiveness. During this stage, package support from startup to commercialization and growth will be provided to foster promising research institute companies in non-face-to-face fields such as digital, network, and artificial intelligence.

In the advancement stage, after 5 years of establishment, the plan is to develop companies into world-class strong small and medium enterprises through technology advancement. 'Large funds' of about 500 million KRW per year will be provided for up to 3 years per company.

To support overseas expansion and global funding attraction of promising research institute companies with high global growth potential, linkage with the K-Global Project will be strengthened.

In particular, the government plans to nurture 100 K-Leading research institute companies by 2025, targeting excellent companies established more than 5 years ago. K-Leading research institute companies are defined as companies that ▲have annual sales exceeding 2 billion KRW, ▲own at least one world-top technology or product, and ▲have secured competitive advantages in product, technology, or process innovation.

The government will discover research institute companies related to the 10 major representative tasks of the Korean New Deal and focus support on advancement stage programs such as large funds, investment attraction, and global expansion.

Through this, the government aims to lead the Korean New Deal and achieve the listing of 20 companies on KOSDAQ by 2025.

The budget required to implement the research institute company innovation growth strategy will reach a total of 350 billion KRW from next year through 2025. The expected economic ripple effects include a production inducement amount of 2.7502 trillion KRW, a value-added inducement amount of 1.1877 trillion KRW, and employment inducement of 113,696 people.

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