Recruitment of Startups for Overseas Expansion at K-Startup Center

Recruitment of 80 Startups for Overseas Expansion Support Program Participation

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) announced on the 21st that it will recruit 80 startup companies to participate in the local scale-up programs of K-Startup Centers in seven countries: the United States, Israel, Singapore, India, Finland, and Sweden. The 'K-Startup Center (KSC)' is a dedicated overseas expansion support hub for startups that have attracted investment or generated overseas sales, and whose business models have been validated, to help them leap into global companies.

The Ministry has established KSCs in the world's leading innovative startup ecosystems and provides comprehensive support such as networking, office space, market information, and overseas expansion funds necessary for domestic startups to enter and settle in these markets. In 2021, a total of 61 companies entered overseas startup ecosystems through KSC, generating overseas sales worth approximately 19.7 billion KRW and attracting 30.1 billion KRW in overseas investment, with 75% of supported companies (46 companies) successfully achieving global scale-up.

For example, the eco-friendly startup Marine Innovation signed a business agreement with Denmark's largest packaging company through the KSC Sweden program and is currently establishing a joint venture after attracting investment in Europe. Additionally, fintech company 'Quotalab' participating in KSC Singapore and smart braille watch company 'Dot' participating in KSC USA each secured investments exceeding 5 million USD from overseas investors. The vegan cosmetics company 'Simplio' also entered the US market for the first time through the KSC program, securing 1.9 million USD in overseas investment and increasing overseas sales tenfold compared to the previous year, growing into a global company.

Through the 2022 KSC overseas expansion project, startups receive comprehensive support including an 8-week local program provided by overseas startup planners with expertise and networks in each field, 60 million KRW in overseas expansion funds, and up to one year of office space usage in the United States, Sweden, France, and Singapore. This year, professional startup planners with abundant experience in supporting startups and investment history, as well as diverse networks specialized in industries by country, will closely support Korean startups in attracting overseas investment, signing local contracts, and conducting overseas demonstrations.

Furthermore, KSC plans to significantly strengthen its pre-domestic programs this year. Once startups are selected, professional startup planners will visit Korea to conduct a two-week domestic workshop to understand the startup’s business model, strengths, and management performance, and identify what support is needed for overseas expansion. The startup planners will discover suitable local companies and investors for the startups and arrange online meetings to preliminarily assess whether overseas companies are willing to cooperate with the startups. After this process, the startups will challenge themselves to settle in the overseas startup ecosystem over eight weeks by directly meeting partners and investors locally to pursue overseas investment attraction, local corporation establishment, and contract signing.

Kang Shin-cheon, Director of the Technology Startup Division at the Ministry, said, "At the 2022 Consumer Electronics Show (CES), Korean startups accounted for one-fifth of all innovation awards, and K-Startups active in the global market are increasing," adding, "We will closely support our competitive startups to grow into global companies through the K-Startup Centers."

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