Government Launches First Demonstration and Procurement Project... Directly Opening Sales Channels for Startups

by Lee Seohee

Published 29 Apr.2026 14:00(KST)

Applications Accepted Until May 20

The government is launching the “First Demonstration and Procurement Project,” a comprehensive support initiative to help new industry startups secure initial market footholds and sales channels by providing end-to-end assistance, from technology demonstration to public procurement and overseas expansion. The aim is for the government to act as the “first customer” for startups that have technological capabilities but face challenges entering the market.

Ministry of SMEs and Startups signboard. Ministry of SMEs and Startups

The Ministry of SMEs and Startups and the Public Procurement Service held a briefing session for the “First Demonstration and Procurement Project” at SJ Kunsthalle in Gangnam-gu, Seoul, on April 29, where they unveiled detailed implementation plans. The project was reported to the Cabinet, presided over by the President, the previous day.

The key point is to link the research and development (R&D) achievements of new industry startups through a four-stage support system: ▲ demonstration by the government and public institutions, ▲ designation as an innovative product, ▲ pilot procurement, and ▲ overseas demonstration. This structure aims to foster initial market formation by simultaneously supporting technology verification and demand creation.

To begin with, the Ministry of SMEs and Startups will support on-site demonstrations in collaboration with government and public institutions. In the first phase, five agencies-including the National Police Agency, the Cultural Heritage Administration, Army Headquarters, Seoul Metropolitan Fire and Disaster Headquarters, and the Korea Coast Guard-will participate as demand institutions, collaborating with 20 startup companies in the robotics sector. The initiative will later expand into the smart city sector. During the demonstration process, specialized institutions such as the Korea Advanced Institute of Science and Technology (KAIST) will assist in project execution, alongside collaborative funding support.

Companies that successfully complete the demonstration will be granted benefits such as exemption from public interest evaluation when designated as “innovative products.” Additional support for expanding sales channels will be provided through registration on the Public Procurement Service’s Innovation Marketplace and participation in public procurement consultation events.

The Public Procurement Service will conduct pilot purchases of innovative products to facilitate their first public procurement. Products that prove successful in use will see purchases expanded to other agencies, while those that are lacking will be given opportunities to reattempt after improvements.

Overseas expansion will also be supported. The Ministry of SMEs and Startups will utilize the Startup & Venture Campus (SVC) network, run by the Korea Institute of Startup & Entrepreneurship Development, to identify overseas demand sources. The Public Procurement Service will provide opportunities for overseas demonstration, helping startups build credible performance records.

As part of this project, the Ministry of SMEs and Startups will introduce goods delivery and transport robots within its offices, conducting direct demonstration and procurement, and plans to carry out additional demonstrations at logistics centers dedicated to small and medium-sized enterprises in the future. Startups wishing to participate can apply via the K-Startup portal until May 20.

Minister Han Sung-sook of the Ministry of SMEs and Startups stated, “While new industry startups possess strong technological capabilities, they lack initial markets and face difficulties entering the public sector. By acting as the first customer, the government will provide step-by-step support from technology demonstration to procurement, accelerating their growth.”

Public Procurement Service Administrator Baek Seung-bo also said, “We will strengthen inter-ministerial cooperation so that innovative companies facing challenges in securing sales channels can leverage public demand to obtain technology verification and opportunities to enter the market.”