Ministry of SMEs and Startups Introduces Converged Support Method for Startup Support Projects
Breaking Away from Auxiliary-Centered Startup Support Methods
The Ministry of SMEs and Startups announced that it will begin recruiting startup companies to participate in the '2024 Startup Leap Package Project' starting from the 27th. The Startup Leap Package is a program designed to support companies that have been established for more than 3 years but less than 7 years in overcoming crisis situations (death valley) caused by sluggish sales and lack of funds, enabling them to leap forward.
In this recruitment, a total of about 270 leap-stage startup companies will be selected and provided with commercialization funds necessary for product development and production, market development, as well as programs for investment attraction and global expansion.
Especially this year, the program will break away from the long-standing subsidy-centered startup support method by providing more support to companies while recovering some funds for reinvestment through a new support method.
The current subsidy-centered support method made it difficult for startup companies to receive sufficient commercialization funds due to limited budgets. The Ministry of SMEs and Startups explained that while expanding support funds per company, it introduced a convergence support method that combines recovery functions such as investment and loans to motivate innovative growth.
The convergence support method is divided into three types: the ‘Success Return Type,’ which recovers funds upon successful commercialization; the ‘Investment Concurrent Type,’ which combines subsidies and investments; and the ‘Loan Concurrent Type,’ which combines subsidies and loans. Detailed information can be found on the K-Startup website, and applications can be submitted until the 19th of next month. After application submission, final recipients will be selected through evaluation, and commercialization funds will be provided.
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Lim Jeong-wook, Director of the Startup Venture Innovation Office at the Ministry of SMEs and Startups, said, “The convergence support method is part of the ‘Startup Korea Comprehensive Measures,’ allowing startup companies to choose one of various support methods to additionally secure necessary commercialization funds,” adding, “We plan to consider expanding the program in the future based on satisfaction and performance.”
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