Fostering 1,000 Startups to Lead the Nation's Economic Future (Comprehensive)

Ministry of SMEs and Startups Announces 'Advanced Future Industry Startup Development Strategy: Super-Gap Startup 1000+ Project'

Lee Young, Minister of SMEs and Startups, is announcing the 'Super-gap Startup 1000+ Project,' a new industry technology-based startup fostering strategy, on the 3rd at the Seoul Creative Economy Innovation Center in Yongsan-gu, Seoul.

[Asia Economy Reporter Kim Cheol-hyun] More than 1,000 promising startups with outstanding technology in new industry sectors will be discovered. The Ministry of SMEs and Startups plans to invest over 2 trillion won jointly with the public and private sectors over five years to nurture these startups as 'Super-gap Startups' that will lead the future of the national economy. On the 3rd, the Ministry of SMEs and Startups (Minister Lee Young) held a 'Presentation and Discussion on the Strategy for Fostering Advanced Future Industry Startups' at the Seoul Creative Economy Innovation Center and announced this plan. This meeting was a follow-up measure to the 11th Emergency Economic and Livelihood Meeting held last month.

'Super-gap Startups' refer to new industry startups possessing unique technological capabilities capable of entering the global market. As of the first half of this year, South Korea has 23 unicorn companies, but only three of them are technology-based companies. Considering the intensifying competition for technological supremacy among countries and the major technology-leading nations such as the United States, Europe, and China focusing all efforts on securing technology and preempting the global market, the Ministry of SMEs and Startups explains that bold policies are necessary to foster advanced future industry startups. Minister Lee Young said, "Although South Korea has produced 23 unicorns, global unicorns are still insufficient, and the focus has been more on businesses or services applying technology rather than technology-based companies," adding, "We must have startups based on core technology to capture a significant portion of added value."

The 'Super-gap Startup 1000+ Project' will inject core support resources into 10 advanced future industry startup sectors essential for securing national competitiveness. The support target has also been expanded to companies up to 10 years old. The 10 sectors selected are ▲system semiconductors ▲bio-health ▲future mobility ▲eco-friendly energy ▲robots ▲big data & AI ▲cybersecurity & networks ▲aerospace & marine ▲next-generation nuclear power ▲quantum technology. The goal is to discover more than 1,000 promising startups in these fields over five years. The selection methods consist of three types: open recruitment, private and ministry recommendation, and private investment. For open recruitment, evaluation panels for each super-gap sector will assess technological capability and growth potential. The private and ministry recommendation type selects startups recognized for their technology and growth potential by large and medium-sized enterprises and relevant ministries in new industry sectors. The private investment type selects companies recognized for growth potential in the private investment market.

Selected super-gap candidates will receive specialized support according to the selection method. For the open recruitment and recommendation types, up to 600 million won in technology commercialization funds will be provided over three years to enhance their technology and connect it to commercialization. To receive maximum support, companies must take a leading role, including efforts to attract investment themselves. Additionally, they can use an R&D program that provides up to 600 million won over two years. The private investment type will receive up to 1.5 billion won in R&D funds over three years to support growth potential. Furthermore, they can receive up to 100 million won each for startup commercialization and overseas marketing expenses. Over five years, more than 2 trillion won is expected to be invested in super-gap startups selected, including government technology commercialization and R&D funds and matching private investment funds. Simultaneously, to support technology completion and commercialization of startups, institutions with technological expertise such as government-funded research institutes will be selected as lead organizations for each super-gap sector to conduct technology transfer, joint research, commissioned research, and demonstration process support. Minister Lee said, "To nurture deep-tech startups, the public and private sectors will work together to foster startups based on core technologies," adding, "We will increase R&D spending and focus on selection and concentration."

Lee Young, Minister of SMEs and Startups, is listening to field opinions at the meeting between companies and experts in the new industry sector held on the 3rd at the Seoul Creative Economy Innovation Center in Yongsan-gu, Seoul.

After basic support, top core companies that have achieved remarkable results, such as receiving large-scale investments from the private investment market or signing supply contracts with global companies, can receive separate follow-up commercialization funds. The selection scale is about 20 companies annually, and selected companies can receive up to 1 billion won per year for two years to promote global scale-up commercialization. To promote private investment in promising new industry sectors, a 'Super-gap Fund' worth 110 billion won will also be newly established. The 'Global Fund' to attract overseas capital will be expanded from the current approximately 6.3 trillion won to about 8 trillion won by the end of next year.

On this day, following the project announcement, the Ministry of SMEs and Startups also held a discussion to hear opinions from the field. Choi Sung-jin, CEO of Korea Startup Forum, said, "It is positive that policies for the deep-tech sector, which may have been neglected in investment compared to its potential, have been prepared," but added, "I hope there will not be an obsession with quantitative results. The policy outcomes will be reflected in numbers, but the content may be insufficient." He also said, "The R&D part should focus on supporting actual success," and "Although 10 promising sectors were selected, results may not come from these sectors, and promising sectors may change after a few years. There should be flexibility in policy operation."

Minister Lee emphasized, "Startups lead the future of the national economy," adding, "We will concentrate the capabilities and resources of the private sector and government in advanced future industry sectors with high growth potential to surely create super-gap startups that lead the global market."

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