Launch of '100 소재·부품·장비 Startups'

Starting with 20 Companies This Year... Discovering and Nurturing a Total of 100 Manufacturing Startups by 2024

On the 11th, Park Young-sun, Minister of SMEs and Startups, is delivering a congratulatory speech at the launch ceremony of the 'Materials, Parts, and Equipment Startup 100'.

[Asia Economy Reporter Kim Cheol-hyun] The project "Materials, Parts, and Equipment Startup 100" has been launched to activate startups in the materials, parts, and equipment sector, strengthen corporate capabilities, and establish a stable domestic supply chain. Starting with 20 companies this year, a total of 100 manufacturing startups will be discovered and nurtured by 2024.

The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 11th that it held the launch ceremony for "Materials, Parts, and Equipment Startup 100" at the G-Camp in Geumcheon-gu, Seoul. This project sets five fields to enable startups to lead new market dominance in materials, parts, and equipment and the future of manufacturing. These fields are smart engineering, new materials, artificial intelligence (AI) and Internet of Things (IoT), bio and cosmetics, and renewable energy. Starting from applications in April, 686 startups applied, recording a high competition rate of 34 to 1. After document screening, online evaluation, and presentation evaluation, 20 companies were finally selected. During this process, 60 citizen evaluators also participated to enhance the transparency of the procedure.

Among the selected companies, 75% (15 companies) were founded by professors and researchers, which the Ministry explained is meaningful as it discovered capable startups expected to have a significant import substitution effect. "Isol," which received the highest evaluation in the smart engineering field, is expected to enable an annual import substitution worth 100 billion KRW through the localization of extreme ultraviolet mask inspection equipment for semiconductors, a market dominated by global companies from Japan and Germany. "Top&c" in the new materials field developed a superior pouch film for secondary batteries compared to competitors, and it is evaluated to achieve an import substitution effect of 200 billion KRW by 2025. "Bitsensing" in the AI and IoT field is expected to secure competitiveness in the autonomous vehicle and driver assistance markets with its high-resolution laser-based image sensor and high-speed signal processing technology. "Innoction Tech" in the bio and cosmetics field developed plasma physical vapor deposition coating technology with eco-friendliness and functionality, contributing not only to an annual import substitution effect of about 80 billion KRW but also to enhancing the competitiveness of K-beauty. "On" in the energy field is evaluated to have high potential not only to dominate the domestic market but also to pioneer new overseas markets such as the Middle East and Southeast Asia, based on miniaturization technology of load break switches essential for renewable energy facilities like offshore wind power.

The selected startups will receive support such as commercialization support (up to 200 million KRW), policy funds (up to 10 billion KRW), and additional points (up to 5 points) in technology development (R&D) projects. Kwon Oh-kyung, chairman of the citizen evaluation panel and president of the Korean Academy of Engineering, said, "As a result of strict evaluation of startup item development and commercialization plans over the next five years, many startups expected to substitute imports and lead new markets in materials, parts, and equipment were discovered," adding, "It showed the possibility that startups can be the main agents of technological independence even in materials and parts sectors with high overseas dependence such as semiconductors and secondary batteries."

Minister Park Young-sun of the Ministry emphasized, "To shift the manufacturing paradigm from a catch-up model with advanced countries to a leading model, the role of startups with cooperation models between demand and supply companies and the capability to create new markets is essential," and added, "We will actively support not only technological and financial assistance but also demonstration, mass production, and overseas expansion to strengthen the competitiveness of materials, parts, and equipment startups and build a healthy ecosystem."