Gijeongwon Selects 59 General Operators for Scaling Up TIPS

The Small and Medium Business Technology Information Promotion Agency (Gijeongwon) announced on March 9 that it has finalized the selection of 59 general operators to support the growth of promising small and medium-sized venture companies through the Scaling Up TIPS and Global TIPS programs.

Exterior view of the Small and Medium Business Technology Information Promotion Agency in Sejong City. Photo by Gijeongwon

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Scaling Up TIPS is a flagship initiative promoted by the Ministry of SMEs and Startups to foster a privately led technology innovation ecosystem. The program links government R&D funding to promising small and medium-sized venture companies that have been directly discovered and invested in by private investors, such as venture capital firms, to support their scaling up and global expansion. Since its launch in December 2021, a total of 557 companies have been selected, with KRW 333.8 billion provided in support, including matched investments and R&D grants.

Beginning this year, the Ministry of SMEs and Startups has further systematized the TIPS support framework so that promising companies can receive uninterrupted support from the startup phase through growth and overseas expansion. A full-cycle support system has been established, consisting of startup support (TIPS), growth acceleration (Scaling Up TIPS), and global expansion (Global TIPS). This year, KRW 292.4 billion will be allocated to Scaling Up TIPS and KRW 74.7 billion to Global TIPS.

Scaling Up TIPS focuses on supporting technological innovation and commercialization for promising companies in the scaling up phase by providing matched government R&D funding for up to three years, ranging from KRW 2 billion to KRW 3 billion, following a prior investment of at least KRW 1 billion from private investors.

Global TIPS, newly introduced this year, targets companies that have proven their potential for global expansion, such as by attracting overseas investment. The program provides up to four years of R&D support, ranging from KRW 5 billion to KRW 6 billion, matched to a prior private investment of at least KRW 1.5 billion.

The 59 operators selected this time are the first chosen under the newly introduced "general operator" system, which features open competition alongside companies directly discovered and invested in by private investors. With the addition of these 59 general operators to the existing 24 consortia of specialized operators, competition among operators is expected to be stimulated, offering even more diverse opportunities to promising companies.

The selected general operators comprise 59 private investment firms, including venture capital companies, new technology business financiers, and startup planners, and will be active for up to six years. Notably, this selection includes five regional hub investment firms headquartered in areas such as Busan, Gyeongnam, Gangwon, and Chungnam.

Since its launch, Scaling Up TIPS has maintained the proportion of support for regional companies at about 1.6 times the average of the general venture investment market. With the participation of the new regional hub investment firms, investment and support for small and medium-sized venture companies outside the Seoul metropolitan area are expected to be further expanded.

Kim Youngshin, President of the agency, stated, "Scaling Up TIPS has attracted over KRW 1 trillion in follow-on investments over four years and enabled 13 companies to go public, proving the potential of privately led R&D support. With this year’s program reorganization, we expect these achievements to accelerate even further."

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