Government to Invest 10 Billion KRW in Women-Only Fund of Funds... Policy Funding to Be Provided

Announcement of the 2nd Basic Plan for Promoting Women-Led Business Activities
Fostering Innovative Sectors Such as Femtech
Startup Programs Tailored to Growth Stages and Generations
5 Trillion KRW Each in Policy Funds and New Guarantees

The government is set to foster women-led businesses in innovative sectors utilizing advanced technologies such as femtech. Each year, it will invest 10 billion KRW in a women-only fund of funds and provide R&D projects exclusively for women-led companies, aiming to expand the ecosystem.

On October 22, the Ministry of SMEs and Startups announced the "2nd Basic Plan for Promoting Women-Led Business Activities." This plan is established every five years in accordance with the Act on Support for Women-Led Businesses.

First, the ministry will focus on nurturing femtech companies (enterprises that use advanced technologies such as AI to improve women's health and quality of life) and supporting promising startups in women-friendly industries such as beauty and food tech. It will also invigorate technology-based women-led businesses by providing R&D projects exclusively for women-led companies.

Specialized startup programs tailored to different growth stages and generations will also be strengthened. The Women Entrepreneurs Comprehensive Support Center will be expanded as a regional hub, and partnerships with universities, such as startup-focused universities, will be promoted.

To help women-led businesses scale up, the government will invest 10 billion KRW annually in a women-only fund of funds. In addition, policy funds and new guarantees totaling 500 billion KRW each will be supplied to women-led businesses. Extra points will also be awarded to women-led businesses applying for overseas expansion support programs, such as export vouchers.

Efforts will be made to create an environment where women entrepreneurs can focus on management activities regardless of pregnancy, childbirth, or childcare. Support for Yellow Umbrella Mutual Aid childbirth loans and maternity benefits for self-employed women will be expanded, and women-friendly workspaces will be provided. Furthermore, the scope of recognized women-led businesses will be expanded from corporations, sole proprietors, and cooperatives under the Commercial Act to include agricultural and fisheries corporations. The proportion of women's products purchased by public institutions will also be revised based on total purchase amounts.

Kim Jungju, Director of SME Strategy Planning, stated, "Women-led businesses are a new growth engine and a driving force for innovation that can help overcome the challenges of low growth and the demographic cliff. We will continue to actively support women entrepreneurs and business activities so that women can fully realize their potential."

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