Growing 'Global Unicorns' with Google and Airbus

'K-Startup Global Expansion Strategy' Presentation

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The government has unveiled a strategy to enhance the openness of the domestic startup and venture ecosystem, aiming to nurture South Korean startups into 'global unicorns.' Starting next year, one of the key initiatives is to support the overseas expansion of 270 domestic startups in collaboration with global companies such as Google and Airbus. The goal is to create an environment where startups can lead the global digital economy beyond the domestic market.

The Ministry of SMEs and Startups (MSS) announced the 'K-Startup Global Expansion Strategy' on the 8th at the 'Emergency Economic Ministers' Meeting' chaired by the Deputy Prime Minister for Economy. MSS assessed that while unicorns (unlisted companies valued at over 1 trillion KRW) and venture companies have emerged as key job creators in South Korea amid the COVID-19 pandemic, there is a tendency to compete mainly within the domestic market. Therefore, they have prepared measures to promote the global market entry of ventures and startups to lead the world digital economy beyond the saturated domestic competition.

◆Utilizing Private Sector Capabilities · Inter-Ministerial Collaboration=First, starting in 2023, MSS will support the growth and overseas expansion of 270 startups in partnership with nine global companies with market dominance, including Google and Airbus. The scale of overseas market entry support using the global networks and infrastructure of domestic large corporations will also be doubled.

The 'Global Unicorn Project' will also be launched next year. This initiative will use private consulting firms to support promising ventures and startups at the scale-up stage in establishing globalization strategies, securing funding, and networking to help them leap to global unicorn status. Additionally, to provide specialized overseas expansion support by sector, inter-ministerial collaboration will identify 140 promising startups by industry from each ministry, linking MSS’s local acceleration programs with sector-specific follow-up support.

◆Building a Global Network=To enable startups to thrive in the global market, a global network will be established and overseas bases expanded. MSS arranged networking opportunities in the U.S. this September between domestic startups, global corporations, and global venture capitalists. The largest domestic startup event, 'ComeUp,' will be fully transferred to the private sector and developed into one of the world's top five global startup festivals. Starting next year, the 'Overseas K-Startup Networking Support Project' will be piloted using diplomatic mission networks to help domestic ventures and startups settle into local startup ecosystems abroad.

Furthermore, leveraging overseas infrastructure of domestic companies such as Lotte Ventures, an additional 'K-Startup Center' will be opened in Vietnam. The Korea Venture Startup Investment Center, Korea Venture Investment Corporation’s overseas office currently located in the U.S., China, and Singapore, will also be expanded to Europe, increasing overseas bases available for ventures and startups.

◆Attracting Overseas Talent and Capital=To attract outstanding foreign talent including international students, visa system activation and the establishment of specialized programs will be pursued. Collaboration with the Ministry of Justice will ensure that foreign tech startup visas can be practically extended every two years. The plan also includes promoting a ministerial recommendation system for professional specific activity visas, which can waive educational or career requirements upon recommendation by the relevant ministry.

Introduction of venture investment systems aligned with global standards will also be pursued, such as the 'Silicon Valley-style fund governance' separating fund operation and management, 'conditional equity conversion contracts' to diversify investment risks, and 'investment condition loans.' To attract overseas investment for ventures and startups, efforts will be made to expand global funds and operate 'Domestic VC Overseas IR,' allowing domestic venture capitalists to directly attract foreign capital.

Minister Lee Young of MSS stated, "Ventures and startups are the vanguard of the digital economy and will play a crucial role in South Korea’s leap to becoming a leading country in the global digital economy. Starting with the Korea-U.S. startup event in September, the Ministry of SMEs and Startups will take the lead to ensure that our ventures and startups do not remain confined to the domestic market but actively expand overseas based on excellent ideas and superior technology."

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