'Zigbang' and 15 Other Companies Finalized as Prospective Unicorns

Guarantee Support Up to 10 Billion KRW Through Korea Technology Finance Corporation

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 17th that after a two-month review of 43 applicant companies, 15 companies were finally selected as preliminary unicorn special guarantee support companies, including Mulla, which produces sportswear, Zigbang, which provides a real estate information sharing platform service, and Padu, a semiconductor design specialist company in the enterprise data storage device sector.

The preliminary unicorn special guarantee was introduced to support the growth of promising companies with high potential to become unicorns by providing guarantees of up to 10 billion KRW. Among the 15 companies selected this time, 11 companies, accounting for 73%, were selected despite operating losses because their marketability and growth potential were verified. The final selection evaluation was jointly conducted by a professional judging panel (15 members) and a public judging panel (60 members, led by Jang Byung-gyu, Chairman of Krafton) to ensure fairness and transparency in reflecting the potential for growth into unicorns.

The average business age of the 15 selected companies was 7.8 years, last year's sales amounted to 15.5 billion KRW, and the average number of employees was 94. The average corporate value was 167.1 billion KRW, with 7 companies (47%) valued below 100 billion KRW, 3 companies (20%) valued between 100 billion and 200 billion KRW, and 5 companies (33%) exceeding 200 billion KRW. Notably, the number of companies valued over 200 billion KRW increased by 3 compared to 2 in the first round this year.

The average investment attraction amount for the selected companies was 26.6 billion KRW, with 8 companies (54%) attracting 20 billion KRW or less, 5 companies (33%) attracting between 20 billion and 50 billion KRW, and 2 companies (13%) attracting more than 50 billion KRW. Additionally, in the technology and business evaluation, which assesses technological development capability and technological innovation on a 10-level scale (AAA to D), 73% (11 companies) received a BBB grade or higher. Seven companies, nearly half, received an A grade or higher.

By sector, there were 7 innovative companies in the information and communication technology and DNA (Data, Network, Artificial Intelligence)-based platform fields, followed by 6 companies in general manufacturing. For the first time, one company from the agricultural sector (smart farm) was selected among the preliminary unicorn special guarantee target companies. Also, 9 companies from the 4th industrial revolution sectors such as biopharmaceuticals and system semiconductors, which have gained attention during the COVID-19 phase, and 9 non-face-to-face companies including those using drones and chatbots for customer service were selected.

Pre-Unicorn Special Guarantee Selected Companies (15, in alphabetical order)

Through the 'National Recommendation System' introduced for the first time this year, 11 companies were recommended, among which Mulla, which produces 'athleisure' clothing such as leggings and yoga wear, was finally selected, reflecting the high interest and demand of the public. The company with the largest investment scale and corporate value is Zigbang. Zigbang is the leading company in the domestic real estate market with 3 million monthly average users and 17,000 registered real estate brokers, and it was evaluated to have high continuous growth potential. Padu, which showed the highest performance in the final evaluation, is a semiconductor design specialist company in the enterprise data storage device sector with low power consumption and heat generation, and was rated AA in the technology and business evaluation. Farmate, the first agricultural corporation selected in the agricultural sector, is an excellent smart farm company that processes and packages quickly cultivable sprout vegetables into salad forms and supplies them to large supermarkets, Coupang, Market Kurly, and other e-commerce companies.

Jang Byung-gyu, head of the public judging panel, said, "We hope that the companies selected as preliminary unicorns will continuously develop innovative technologies based on special guarantee support and grow into unicorn companies, contributing to the creation of quality jobs." He added, "The public judging panel will continue to do its best in collaboration with the government and the professional judging panel in selecting preliminary unicorns."

Cha Jung-hoon, Director of Startup Venture Innovation at the Ministry, said, "The preliminary unicorn special guarantee started as a pilot project last year and has been fully launched as a regular project this year, selecting a total of 57 companies. These companies have an average investment amount of 27.6 billion KRW and an average corporate value of 136.8 billion KRW, which have been verified for high growth potential by private venture capital and the public judging panel." He added, "Many companies have expressed their intention to fulfill corporate social responsibility by aiming to grow into global unicorn companies and giving back to society after success. Therefore, the Ministry plans to provide additional guarantee fee reductions when issuing guarantees to companies with excellent performance-sharing potential among the final selected companies."