Yoon Administration to Foster Ventures and Startups Through Private Sector Leadership

Gosan, a member of the Economic Subcommittee 2 of the Presidential Transition Committee, is briefing on venture and startup companies at the Transition Committee press conference hall in Tongui-dong, Jongno-gu, Seoul on the 26th. Photo by Hyunmin Kim kimhyun81@

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[Asia Economy Reporter Kum Bo-ryeong] The Yoon Suk-yeol administration is fostering the venture and startup ecosystem led by the private sector.

The 20th Presidential Transition Committee's Economic Subcommittee 2 announced on the 26th, "The core principle of the venture and startup policies to be pursued by the Yoon Suk-yeol administration is to strictly adhere to the principle of 'private sector-led and government-supported' while scaling up our venture and startup ecosystem to a global level through detailed implementation tasks."

The detailed tasks include strengthening support for global startups and innovation technology-based startups, significantly expanding the mother fund to enhance scale-up, securing excellent talent, and regulatory innovation to support growth.

First, to strengthen global startups and innovation technology-based startups, the government will expand the TIPS program, which provides follow-up support to innovative startups whose growth potential has been verified by private entities such as venture capital (VC) and accelerators. A separate support track with increased funding will be established for deep-tech companies such as bio and artificial intelligence (AI). Go San, a member of the Economic Subcommittee 2, said, "We will promote the 'Export New Market Pioneer Project' that boldly supports market entry for companies targeting the global market to accelerate their growth into global unicorns."

The transition committee will also actively create a mega fund that focuses on investment at the scale-up stage to enable unicorn leaps with domestic capital. This is in consideration of the fact that many domestic unicorns have relied on attracting overseas capital during the later growth stages. Along with this, investment in early startups under three years old and youth and women-led startups will be strengthened through the expansion of the mother fund.

Over the next five years, the plan is to nurture 100,000 professional digital personnel. They intend to create programs jointly with private companies such as NHN and Kakao to train software engineers and data engineers. The number of 'startup-centered universities' will also be expanded to connect university youth talent and technology to startups.

Systems that hinder the voluntary growth of small and medium-sized and venture companies will be eliminated. Go, a transition committee member, said, "We have decided to promptly introduce the multiple voting rights system, which has been a long-standing wish of the venture and startup community, and to raise the tax exemption limit for stock options. We are also considering extending the grace period for mid-sized companies from the current three years to five years."

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