South Korea Achieved 'Startup Popularization' but Needs Substantial Improvement and Advancement

Asan Nanum Foundation Publishes Report on 'International Comparative Study to Enhance Competitiveness of Korea's Startup Ecosystem'

[Asia Economy Reporter Kim Cheol-hyun] South Korea has achieved the 'popularization of startups' but needs to focus on internal strengthening and advancement, according to a recent assessment. On the 29th, the Asan Nanum Foundation (Chairman Han Jeong-hwa) announced this in its report titled "International Comparative Study to Enhance the Competitiveness of Korea's Startup Ecosystem," which analyzes the characteristics of advanced overseas startup ecosystems and evaluates the competitiveness of Korea's startup ecosystem.

The study was conducted jointly with the Science and Technology Policy Institute (STEPI), and through developed indicators and an analytical framework, it quantitatively compared the startup ecosystems of six major countries: the United States, China, Japan, the United Kingdom, Germany, and France. It also researched and documented the philosophy of startup policies, historical changes, and development processes in these countries, examined key issues and trends in each national startup ecosystem, and derived implications based on these findings. The conclusion presented future directions for the development of Korea's startup ecosystem and proposed policies suited to the current situation.

The report found that 78% of the government’s startup support budget in Korea is concentrated on the pre-startup or early startup stages. It also noted an increase in light startups based on software (SW) and idea-centric models with low entry barriers, which face survival threats. Furthermore, it analyzed that similar support projects by different ministries and local governments are causing confusion rather than effectively supporting startups.

To improve this, the report proposed four policy recommendations. It emphasized the need for close and customized support to ensure that everyone who wants to start a business has equal opportunities during the startup preparation process and startup activities, and to foster the growth of competitive startup companies. It also stressed the importance of helping create many startups that can lead technology and the economy, establishing a national startup policy brand and governance, and cultivating a unique innovation culture.

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