Korea’s USD 3.1 Billion Startup Boost: Diverse Support for Innovation and Global Expansion
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Korea’s Ministry of SMEs and Startups has officially approved the ‘2024 Central Government and Local Government Startup Support Program,’ boasting a total budget of approximately USD 3.1 billion.
This comprehensive startup initiative encompasses 99 institutions, hosting a total of 397 startup support projects, with the overall budget showing a 1.4% increase from the previous year, reaching USD 3.1 billion.
Breaking down the figures, the Ministry of SMEs and Startups leads the charge among central government agencies, contributing a substantial budget of KRW 3.4 trillion. Meanwhile, Seoul City takes the lead among local governments, offering a generous sum of KRW 38.5 billion (approximately USD 32 million).
In terms of support project categories (8 in total), loans and guarantees take the lion’s share, accounting for 55.3% with a budget of KRW 2 trillion (approximately USD 1.7 billion). Business development follows closely with KRW 790 million (approximately USD 670 million), making up 21.4%, while technology development secures KRW 542 million (approximately USD 460 million), representing 14.7%.
Notable among the individual projects is the TIPS (Tech Incubator Program for Startup) initiative, jointly undertaken by the government and private sector to discover and support promising startups. This program has witnessed a substantial budget increase of approximately USD 78.9 million compared to the previous year.
Furthermore, initiatives supporting overseas expansion for startups and fostering domestic entrepreneurship with international talents have seen an increase of 8 projects from the previous year, coupled with a budget boost of approximately USD 23.1 million. Additionally, funding for re-entrepreneurship activation has seen a noteworthy increase of approximately USD 21.1 million, bringing the total to USD 84.5 million.
To bolster support for the growth of technology-based digital and deep-tech startups through public-private collaboration, the government is implementing initiatives to promote innovation startups. The TIPS program, leveraging the capabilities of the private sector to identify innovative startups, is significantly expanded to support 1,925 companies with a budget of approximately USD 399 million.
Supporting the business development and growth of promising startups in 10 major emerging industries, the DIPS 1000+ project is providing assistance to 505 companies with a budget of approximately USD 87.2 million. Both projects offer support for up to 10 years, recognizing the longer development and commercialization periods compared to regular companies.
The support for global market entry for domestic startups and the activation of domestic entrepreneurship with international talents has also been expanded.
Collaboration projects with global companies, aimed at promoting business commercialization, receive support for 290 companies with approximately USD 36.4 million. The K-Startup Center project, offering local support programs and resources for entrepreneurs aiming to grow into global startups, is set to receive support for 140 projects with approximately USD 13 million. Additionally, support for the Global Startup Academy, aiding 60 individuals with approximately USD 11.7 million, and the Global Startup Nurturing Program, providing overseas verification, will receive support for 140 projects with approximately USD 8.4 million.
The K-Global Overseas Expansion program, supporting the settlement and growth of ICT innovation technology companies in overseas markets, will be provided to 150 companies with approximately USD 4.9 million. The tourism global leading company support project, assisting in overseas market development, overseas expansion consulting, and investment attraction for venture companies in the tourism sector, is set to receive support for 30 companies with approximately USD 6.3 million.
To facilitate the smooth re-challenge of failed startups, support for re-entrepreneurship funding is expanded to USD 84.5 million..
Jung Wook Lim, Director of the Startup Venture Innovation Division at the Ministry of SMEs and Startups, the Ministry’s commitment to not only effectively communicate various programs to startups through integrated announcements but also to intensify efforts in promoting collaboration and cooperation among support programs, ultimately aiming for tangible outcomes in support policy.
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