Seoul City Supports Technology Commercialization for 1,305 Companies Over 5 Years... KOSDAQ Listings and Global Funding Achievements

A Total of 127.3 Billion R&D Funds Invested... This Year, 34.7 Billion Invested in Bio, AI, Fintech, etc.
Despite the COVID Crisis, Supported Companies' Total Sales Increased by 96.8 Billion Last Year... 422.7 Billion Investment Attraction, 10 Companies Preparing for KOSDAQ Listing

[Asia Economy Reporter Lim Cheol-young] Seoul City announced on the 22nd that it has invested 127.3 billion KRW in research and development (R&D) funds over the past five years until 2020 to focus on supporting the technology commercialization of more than 1,300 small and startup companies with technological competitiveness and potential, enabling them to secure sustainable growth beyond mere survival.

According to Seoul City, the sales related to developed technologies of companies that received R&D support last year amounted to 96.8 billion KRW, a 20% increase compared to the previous year. Twenty-six companies successfully attracted private investments totaling 422.7 billion KRW. Five companies succeeded in listing on KOSDAQ and KONEX through R&D support, and currently, ten companies receiving support are preparing for KOSDAQ listing.

The potential for global expansion is also increasing. Otwox Co., Ltd., which developed a bicycle headlight that optimizes energy use through IoT technology, succeeded in raising nearly 300 million KRW in funding on Makuake, Japan’s leading crowdfunding platform, with support from the city. Palmcat Co., Ltd., which developed a smart controller using motion recognition technology, also achieved funding exceeding 100 million KRW.

Seoul City and the Seoul Business Agency (SBA) will invest 34.7 billion KRW in technology development costs this year as well. They plan to focus investments on strategic industries prioritized by the city, such as bio, artificial intelligence (AI), and fintech, to respond to rapid technological changes caused by the 4th Industrial Revolution and COVID-19, and to fully support our companies in securing market leadership.

This year, the core focus is on "technology development centered on commercialization to respond to the post-COVID era," concentrating on technology commercialization in non-face-to-face industries, fostering strategic industry hubs such as Hongneung (bio) and Yangjae (AI), and technology commercialization for small, venture, and startup companies. They will support 4.1 billion KRW for about 20 projects in four fields where demand has increased after COVID-19: bio/medical, AI-based non-face-to-face and quarantine technologies, fintech, and blockchain.

To nurture core industries of the 4th Industrial Revolution and secure them as growth engines for Seoul City, 10.8 billion KRW will be invested in technology development based on hubs such as Hongneung (bio/medical), Yangjae (artificial intelligence), G-Valley (industry convergence), and Dongdaemun (fashion). Up to 500 million KRW in technology development costs will be supported per hub.

Additionally, 6 billion KRW will be allocated to support technology commercialization for small businesses and startups. Selected projects will receive up to 50 million KRW in technology development funds over 6 to 7 months, along with close support for follow-up measures such as intellectual property protection and market development to facilitate early commercialization. Furthermore, 12.4 billion KRW will be provided through programs like ‘Testbed Seoul Demonstration Support’ to expand product demonstration opportunities for small and startup companies, and competitive domestic and international R&D support programs such as Seoul Global Challenge and Seoul Innovation Challenge.

Moreover, R&D funds will be provided for growth startups requiring demonstrations for overseas expansion and companies wishing to engage in technology startups but facing difficulties in independent development and seeking technology transfer of developed innovative technologies. Detailed information on technology development and commercialization support projects can be found on the SBA and ‘Seoul R&D Support Center’ websites.

Kim Ui-seung, Director of Seoul City’s Economic Policy Office, stated, “Competitive technological capabilities are the foundation for sustainable corporate growth,” adding, “We will provide comprehensive support throughout the entire business cycle?from technology development to market development?to help small, venture, and startup companies facing difficulties such as COVID-19 enhance their technological competitiveness in domestic and international markets, lead industries, and secure market dominance.”

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