1,000 "Startup Rookies" to Be Fostered to Support Youth Entrepreneurship

"Youth Startup Imagination Concert" Held on the 17th
Listening to Startups' Voices on the Ground
Announcement of the "New Government's Startup and Venture Policy Vision" to Realize the Third Venture Boom

The new administration has unveiled its policy vision for startups and venture businesses, aiming to create a dynamic startup ecosystem where young people's ideas lead to innovation and deep tech startups, including those in artificial intelligence (AI), can grow rapidly.

The Ministry of SMEs and Startups announced on the 17th that it hosted the "Youth Startup Imagination Concert" at Startup Square. The event brought together over 100 participants, including officials from the Ministry of Economy and Finance, the Ministry of Environment, the AI Committee, startups, large corporations, and various associations and organizations.

Prior to the event, the Ministry of SMEs and Startups announced the "New Government's Startup and Venture Policy Vision." To support young people in launching bold startups, the ministry will implement the "Startup Rookie Project," which helps turn ideas into innovation. Around 1,000 "startup rookies" will be identified, and those with outstanding potential will be nurtured using the "Venture Studio" model, where professional accelerators (ACs) and venture capitalists (VCs) provide comprehensive support from early-stage investment to close mentoring. Additionally, by 2030, the government plans to supply a total of 11 trillion won in innovation funds for early-stage and young entrepreneurs, including 3 trillion won in venture funds and 8 trillion won in technology guarantees.

President Lee Jae-myung is speaking at the Youth Startup Imagination Concert. Photo by Yonhap News

The government will also fully launch the "Next Unicorn Project," which aims to foster next-generation AI and deep tech unicorns by making targeted investments in promising companies at each stage of their growth. The project totals 13.5 trillion won. Through this initiative, the government will discover and nurture companies with unicorn potential and support them by building an "investment growth ladder" in collaboration with the National Growth Fund, which was established this year, thereby fostering advanced technology companies. Furthermore, the government plans to establish an inter-ministerial cooperation system to support startups in key technology fields such as AI, defense, and climate tech, working closely with relevant ministries.

To support ambitious overseas expansion, the government will set up a "Startup and Venture Campus" in Silicon Valley, United States, providing integrated services needed for startups to establish themselves abroad. In addition, the government will create the "K-Open Innovation Hub," a platform that enables startups to collaborate not only with large corporations but also with mid-sized companies, small businesses, and public institutions. Opportunities for collaboration with global big tech companies such as Google and Nvidia will also be expanded.

Plans have also been made to attract more private capital into the venture investment market. To create a 40 trillion won venture investment market, the government will double the budget for the Korea Fund of Funds, extend its duration, and simultaneously improve the venture investment system. The government is also considering expanding tax incentives for young startups in new industries and regional venture investments, as well as increasing support for investments in later-stage companies and secondary funds, thereby providing step-by-step tax benefits from startup to growth and exit.

A safety net will be established so that experiences of failure can become valuable assets. The government plans to expand the prohibition of joint liability, which is currently limited to venture investment associations and companies, to include startup planners and individual investment associations. In addition, a "Re-challenge Fund" totaling 1 trillion won will be created by 2030 to ensure that young people who start over can secure sufficient investment.

At the Imagination Concert, six startups in the youth and deep tech sectors discussed three main sessions: youth challenges, deep tech, and global expansion. The audience freely asked questions via QR codes. Participants proposed expanding government support for youth and early-stage startups, increasing the participation of AI and deep tech startups in large-scale policy projects, enhancing government attention to the defense and climate tech sectors, and providing support for successful entry into overseas markets.

Han Sung-sook, Minister of SMEs and Startups, said, "We will swiftly implement the 'New Government's Startup and Venture Policy Vision' by incorporating the feedback gathered at this talk concert," adding, "Based on additional issues identified during the venture and startup policy field tours, we will establish a comprehensive plan in the second half of the year to help Korea become one of the world's top four venture powerhouses."

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