Samsung Electronics and Naver to Foster '100 Global Companies' Connecting Them

Government to Support 1,000 Promising Non-Face-to-Face Startups with 100 Million KRW for Commercialization
9 Trillion KRW Dedicated Fund for Startups and Ventures, Active Support for Overseas Expansion

[Asia Economy Reporter Kim Jong-hwa] The government will discover 1,000 promising non-face-to-face startup companies to foster enterprises following Samsung Electronics and Naver, providing up to 100 million KRW in commercialization funds.

As the COVID-19 pandemic has led to non-face-to-face companies creating more jobs than face-to-face companies, and many non-face-to-face ventures and startups with global growth potential are emerging, the government is determined to nurture domestic promising startups into '100 Global Innovative Venture Companies.'

To this end, the government has prepared funds totaling 9 trillion KRW. This includes 5.5 trillion KRW in preferential non-face-to-face guarantees (Korea Technology Finance Corporation), 3 trillion KRW in the non-face-to-face sector 'Smart Korea Fund' (Korea Venture Investment Corp), and 500 billion KRW in policy loans (Small and Medium Business Corporation), establishing dedicated funds to support non-face-to-face startups and venture companies until 2025.

The Ministry of SMEs and Startups announced on the 19th, at the '20th Emergency Economic Central Countermeasures Headquarters Meeting,' the 'K-Non-face-to-face Global Innovative Venture 100 Project,' jointly established with related ministries.

According to the K-Non-face-to-face Global Innovative Venture 100 Project, three main strategies and 26 detailed tasks have been prepared: △ establishing a support system for non-face-to-face venture companies at each growth stage △ creating domestic demand and promoting globalization △ building an ecosystem foundation for non-face-to-face startups and venture companies.

First, through inter-ministerial collaboration, 1,000 promising non-face-to-face startup companies will be discovered, and up to 100 million KRW in initial funds will be pre-provided in sectors such as medical care, education, cultural tourism, urban housing, logistics distribution, agricultural food, marine fisheries, and foundational technology.

To create domestic demand, non-face-to-face service vouchers will be provided. The vouchers, totaling 576 billion KRW by 2021, will gradually expand the support areas beyond the non-face-to-face services currently provided in the first phase this year. The public procurement system for SMEs will be improved to be more non-face-to-face friendly by establishing separate criteria for pilot purchases of technology development products, encouraging public institutions to actively purchase new products from non-face-to-face startups and venture companies.

Additionally, for non-face-to-face products and software, the Korea Technology Finance Corporation will provide pre-guarantee certificates, supporting contract conclusion and guaranteeing a 100% refund if problems arise; this system will be piloted.

To promote overseas investment attraction, a 'Global Venture Capital Fund' worth 200 billion KRW will be established, and online overseas company briefings and dispatch of overseas advancement delegations will be expanded. For overseas expansion, overseas company incubation will be conducted through the 'K-Startup Center (KSC),' and to secure overseas sales channels for promising non-face-to-face items, connections to overseas online malls such as Amazon, eBay, and Shopee will be expanded. Export support in the digital content sector will also be strengthened through non-face-to-face export consultations and online exhibitions.

To build a foundation for the non-face-to-face enterprise ecosystem, the non-face-to-face service voucher system will be expanded into the 'K-Non-face-to-face Marketplace,' connecting suppliers and demanders. To systematically nurture non-face-to-face venture companies, the enactment of the 'Non-face-to-face SMEs Promotion Act' will be considered, and related ministries such as the Ministry of SMEs and Startups and Statistics Korea will collaborate to develop non-face-to-face SME statistics and prepare regulatory improvement plans for the non-face-to-face sector.

Through this, the government expects to nurture 100 world-class non-face-to-face venture companies and 700 non-face-to-face prospective unicorns by 2025, creating approximately 160,000 jobs in the non-face-to-face venture and prospective unicorn sectors.

Park Young-sun, Minister of SMEs and Startups, said, "During the COVID-19 crisis, non-face-to-face startups and venture companies have created more jobs, and the number of promising non-face-to-face venture companies in Korea is increasing. With government support added, we can nurture world-class venture companies," adding, "Through this project, we will contribute to realizing the 'Great Transition to a Digital Economy, Smart Korea' by enabling Korea to take the lead in the non-face-to-face market."

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