Government Declares National Startup Era... Overcoming K-Shaped Growth and "Taking a Break" with Self-Created Jobs

Elevating Entrepreneurship into a "Cultural Phenomenon"... Additional National Startup Auditions Planned
Promoting "Local Startups" Through Support for Regional Startup Ecosystems

The government has declared a "National Startup Era" to break through the entrenched K-shaped growth centered on the Seoul metropolitan area and large corporations, as well as to address the rising number of young people categorized as "taking a break" from economic activity. The strategy aims to transform the structure of the national economy from "seeking jobs" to "creating jobs on one's own" by focusing on large-scale startup auditions, promoting local entrepreneurship, and transferring public technologies to the private sector.

Koo Yoon-chul, Deputy Prime Minister for Economy and Minister of Strategy and Finance, is presiding over the Emergency Economic Headquarters Meeting and the National Startup Era Strategy Meeting. Ministry of Strategy and Finance.

On April 24, at a meeting of the Emergency Economic Headquarters and the Ministers of Economy, presided over by Deputy Prime Minister and Minister of Finance and Economy Koo Yoonchul, the government announced the "National Startup Era: Fostering a Startup Boom" plan in cooperation with relevant ministries. This new measure marks a departure from the past approach of simply distributing budgets, emphasizing instead the government's commitment to sharing startup risks and fostering a "startup nation" where innovation can occur anywhere across the country.

Selecting 5,000 "Startup Seeds"... Nationwide Startup Survival Boom by Year-End

The most distinctive feature of this plan is elevating entrepreneurship into a "cultural phenomenon." The government has allocated an additional KRW 200 billion to the "Startup for All" project through a supplementary budget and plans to launch a second project within this year. The first project, already underway, is currently selecting 5,000 teams nationwide. These teams will go through regional and area-based preliminaries and advance to a final national audition stage by the end of the year. As of April 24, the project's website had already received 14,191 idea submissions, underscoring the intense enthusiasm. The final winner will receive an exceptional support package worth more than KRW 1 billion.

Joo Hwanuk, Policy Coordination Officer at the Ministry of Finance and Economy, stated, "The key is for the government to become a co-founder, sharing the risks and establishing a system that enables anyone with an idea to start a business anywhere in the country." He added, "We will maximize the chances of success from the 'startup seed' stage, where good ideas are discovered, through to final incubation."

To promote entrepreneurship, even the so-called "iron rice bowl" technologies from research institutes will be opened up. The government plans to gradually make intellectual property (IP) held by the state and public research institutions available to startups. In June, a KEPCO technology holding company will be established to operate a startup co-growth program. This initiative will pave the way for public technologies in the energy and climate tech sectors to flow into private startups and be commercialized.

From "Tech" to "Baking"... Expanding Scope Through Local Startups

While previous startup policies have focused mainly on "tech startups" involving advanced technologies, this time the government will also foster "local startups" to revitalize regional commercial districts. A government official explained, "What we commonly refer to as startups are tech startups, whereas local startups are those specialized for small business owners." The government believes that if regional commercial districts become competitive, their influence can spread nationwide and even globally. To support this, companies attracting local startup investment will be eligible for matching loans of up to KRW 500 million and business commercialization funds of up to KRW 200 million.

The regional startup ecosystem will also be significantly strengthened. Fifty percent of the Ministry of SMEs and Startups' Private Investment-led Technology Startup Support (TIPS) program will be prioritized for local areas, and a KRW 2 trillion regional growth fund will be established by 2030, focusing on the "Five Regions, Three Special Zones." TIPS is a private-led technology startup support program in which private investors (operators) make initial investments, followed by government matching funds for R&D and business commercialization. Addressing concerns that a lack of investment infrastructure such as accelerators (ACs) in regional areas could lead to a large number of "weak startups" being selected for TIPS, a government official stated, "The creation of this fund will serve as a catalyst, encouraging investment talent from the Seoul metropolitan area to spread to local regions and creating a virtuous cycle."

A safety net has also been prepared for young people categorized as "taking a break" who challenge themselves through entrepreneurship but experience failure. The business commercialization funds provided through the Startup for All project do not require repayment. To minimize risks, even those who fail once will receive a "challenge career certificate" for their entrepreneurial experience and be given preferential opportunities to participate in future startup support programs.

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