Fostering ICT Global Future Unicorns... Growth Funding Support for 15 Companies

by Cho Seulkina

Published 24 Feb.2021 12:00(KST)

[Asia Economy Reporter Seulgina Jo] The Ministry of Science and ICT announced on the 24th that it will open the announcement for the ‘2021 Global ICT Future Unicorn Development Project (ICT GROWTH),’ which provides comprehensive support such as growth funds and overseas expansion to promising companies in the ICT sector to achieve high growth.

This year, as in last year, 15 companies will be selected. Selected companies will be provided with a comprehensive package including necessary funding for rapid growth, support for global market entry, and performance bond insurance support.

Eligible applicants are SMEs with global capabilities that meet either of the following criteria: ▲ companies that have received investments of 2 billion KRW or more from domestic or foreign institutional investors in the last three years after incorporation, or ▲ companies whose sales have increased by an average of 10% or more annually over the past three years.

The Information and Communication Industry Promotion Agency (NIPA), the dedicated agency for startup and venture support under the Ministry of Science and ICT, will form a selection committee to focus on evaluating applicants’ possession of core technologies, marketability, growth potential, global capabilities, and return plans. The Korea Credit Guarantee Fund will conduct eligibility screening for guarantee support and select supported companies.

The Korea Credit Guarantee Fund will provide guarantee support for growth funds up to 10 billion KRW per selected company (up to 5 billion KRW each for facility funds and operating funds). The guarantee conditions are a 100% guarantee ratio and a 0.5% guarantee fee rate. Additionally, among the selected companies, investment target companies will be selected to receive guarantee-linked investments of up to 3 billion KRW.

Furthermore, NIPA plans to operate specialized programs including a pre-intensive growth camp and utilization of overseas bases to discover local customers, attract investment, and support localization. The Born2Global Center (B2G) will provide support through product market fit (PMF) consulting based on local market demand and overseas management consulting.

The Korea Telecommunications Operators Association will create a high-growth ICT investment fund using the Korea IT Fund (KIF) and assist in investment linkage for selected companies. Seoul Guarantee Insurance will support expanding the guarantee limit of performance bond insurance, offering premium discounts, and providing free credit management services for SMEs.

Lee Seungwon, Director of the Information and Communication Industry Policy Division at the Ministry of Science and ICT, emphasized, “Domestic startup policies are increasing the focus on scale-up support policies considering job creation and economic ripple effects,” adding, “We will continue to provide customized comprehensive support so that promising ICT companies can grow into global unicorn companies in the future.”