Government to Invest 3.7 Trillion Won in Startup Support

11 Central Government Ministries and 99 Agencies Support Startups

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The government is providing a budget of 3.7 trillion KRW to support startups.

On the 3rd, the Ministry of SMEs and Startups announced the '2024 Integrated Announcement of Startup Support Projects by Central Ministries and Local Governments' with a total budget of 3.7121 trillion KRW.

This integrated announcement of startup support projects includes 99 organizations and a total of 397 startup support projects. The total budget is 3.7121 trillion KRW, an increase of 51.4 billion KRW compared to the previous year. This is also 45.3 billion KRW (1.2%) larger than the 2022 budget, which was the largest ever for startup support projects.

By organization, among central ministries, the Ministry of SMEs and Startups provides 3.4038 trillion KRW (including 2.0458 trillion KRW in loans, accounting for 95.6% of central ministries), and among local governments, Seoul City provides 38.5 billion KRW (25.5% of local governments), the largest budget support.

By type of support project, loans and guarantees account for the largest share with 2.0546 trillion KRW (55.3%). This is followed by commercialization (793.1 billion KRW, 21.4%) and technology development (544.2 billion KRW, 14.7%). The single project with the largest budget increase is the TIPS program, which jointly discovers and supports promising startups through public-private cooperation, increasing by 93.3 billion KRW compared to the previous year.

Support projects for startups’ overseas expansion and activation of domestic startups by overseas talents increased by 8 projects compared to the previous year, with the budget increasing by 27.3 billion KRW. To revitalize re-challenges, the re-startup loan fund was increased by 25 billion KRW.

Major startup support projects include support for 'new industry and technology startups.' This is a support project to strengthen support areas through public-private cooperation for the growth of technology-based digital and deep tech startups and to promote startups in new industry sectors.

The TIPS program, which selects innovative startups by utilizing private sector capabilities and provides linked support such as government research and development (R&D) and commercialization funds, supports 1,925 companies with 471.5 billion KRW. The 'Startup1000+' project, which selects promising startups in 10 major new industry sectors such as system semiconductors and bio-health to support commercialization and growth, is supported with a budget of 103.1 billion KRW.

Startup globalization is also supported. The global company collaboration project, which supports commercialization through cooperation with global companies, supports 290 companies with 43 billion KRW. In addition, support is provided for re-startups, youth startups, and regional startups.

Lim Jeong-wook, Director of the Startup Venture Innovation Office at the Ministry of SMEs and Startups, stated, "To ensure that government and local government startup support projects can be efficiently utilized in the field, we are simplifying the documents submitted when applying for projects and standardizing application forms, among other institutional improvements to enhance policy customer convenience."

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