Ministry of SMEs and Startups Provides 100% Funding for Startup Growth and Technology Innovation R&D Budget

Ministry of SMEs and Startups Announces Follow-up Support Measures for Companies Changing R&D Agreements
Hosts 'SME Venture R&D Future Strategy Roundtable'

If companies wish to continue research and development (R&D), interest-free level loan support will be provided, and if they wish to discontinue R&D, sanctions will be waived. This is a supplementary measure prepared by the Ministry of SMEs and Startups for companies with reduced R&D budgets. The Ministry of SMEs and Startups is currently promoting R&D structural reform this year to improve inefficient elements such as overlapping and duplication between projects and short-term issues.

On the 31st, the Ministry of SMEs and Startups announced follow-up supplementary measures for R&D agreement changes at the 'SME & Startup R&D Future Strategy Roundtable' held at the Kensington Hotel in Yeouido, Seoul. First, the Ministry decided to fully support two projects under the general account, Startup Growth (TIPS) and Technology Innovation, without reducing the already secured budget. For unpaid amounts from last year's project expenses, payment will be made promptly regardless of whether the agreement is changed.

Oh Young-joo, Minister of SMEs and Startups, is delivering a welcoming speech at the "SME and Startup R&D Future Strategy Roundtable" held on the 31st at the Kensington Hotel in Yeongdeungpo-gu, Seoul.

If companies with reduced budgets wish to continue R&D, interest-free level loans will be supported for three years. Interest of 5.5% will be reduced for up to twice the amount of the reduction over three years. With a total scale of 430 billion KRW, special guarantees from the Korea Technology Finance Corporation will be provided in parallel so that companies without their own collateral capacity can also receive interest-free level loan support. If companies wish to discontinue R&D without changing the agreement, sanctions such as participation restrictions will be waived, and technology fee payments will also be exempted. For purchase-conditional projects, if the demand company and participating SMEs mutually agree, sanctions will not be imposed for unavoidable non-fulfillment of purchase contracts. Special exceptions will also be applied to allow companies with reduced budgets to challenge other new projects.

On the same day, Minister Oh Young-joo of the Ministry of SMEs and Startups also presented the basic direction for R&D structural reform. First, the existing 47 projects will be converted into two main projects, and classified into two types: 'solo type,' where companies develop alone, and 'collaborative type,' cooperating with universities, research institutes, etc., to be operated flexibly according to the situation. Small-scale projects under 10 million KRW that are 'scattergun style' will be avoided, and support for projects with proven results among existing projects will be expanded. R&D cooperation with global leading institutions will also be strengthened. The maximum number of times a company can receive support will be reduced from four to three. Penalties will be imposed if it is found that a company intentionally applied for a project that has already been developed.

The roundtable on the same day was held as an opportunity to hear opinions from experts, policy research institutes, and other stakeholders regarding the direction of R&D structural reform. Ten advisory committee members were appointed in the first phase, and additional members will be added in the future. The working group will be intensively operated for three months with the Korea Institute of Science and Technology Policy serving as the secretariat.

Minister Oh said, "We will abolish subsidy-type R&D projects and restructure towards 'R&D-like R&D' such as strategic technology and global cooperation," adding, "We will refine detailed directions by listening to experts' opinions." Minister Oh also stated, "We will actively promote follow-up supplementary measures to minimize corporate damage caused by agreement changes."

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