Government Invests 812 Billion Won in Startup Support... Expanding Collaboration with Large Corporations and Non-Face-to-Face Sectors

Ministry of SMEs and Startups Expands 2021 Startup Support Program by 10.8%
Fostering Non-Face-to-Face Startups and Collaborating with Global Companies
Newly Established Green New Deal Specialized Fields Including Eco-Friendly and Energy Sectors

[Asia Economy Reporter Kim Bo-kyung] The government will invest 812 billion KRW this year to support startups. It will focus on fostering non-face-to-face startups in response to the COVID-19 pandemic and promoting collaboration with large corporations.

The Ministry of SMEs and Startups announced on the 25th that it will provide 812 billion KRW through a total of 31 projects categorized by commercialization, facilities/incubation, startup education, events, and networking to support startups in 2021. The project scale increased by 10.8% compared to last year's main budget (732.6 billion KRW), and the number of projects increased by five.

First, cooperation between large corporations and startups will be strengthened. The 'Large-Startup Problem Solver Platform' project will expand the problem-posing institutions to include not only large corporations but also senior ventures, global companies, and public institutions.

Startups that solve difficulties faced by large corporations and collaborate with them will receive linked support including commercialization funds (100 million KRW), technology development (up to 400 million KRW), and technology guarantees (up to 2 billion KRW).

The 'Global Company Collaboration Program' will unify the supportable business age limit to startups within seven years of establishment, which was previously applied differently by program, to reduce confusion and expand eligible participants.

The Global Company Collaboration Program is a project that supports commercialization funds (average 150 million KRW) for 200 startups in fields such as mobile apps and artificial intelligence by collaborating with global companies like Google, Microsoft, and Amazon.

The 'Non-face-to-face Promising Startup Development Project,' operated as a pilot project last year, will support commercialization such as prototype production and marketing for key non-face-to-face sectors and startups (200 companies, average 150 million KRW) through secured dedicated budgets and strengthen collaboration with central ministries such as the Ministry of Health and Welfare and the Ministry of Education.

The tailored support system for startups at each growth stage will be continuously strengthened, and new specialized fields related to Green New Deal sectors such as eco-friendly and energy will be established.

Through collaboration with large corporations, growth support will be provided for startups in the manufacturing and information and communication technology (ICT) sectors at the leap stage, including product/service development, investment, market development, and overseas expansion.

The 'Startup Support Service Voucher Project,' which supports tax/accounting and technology escrow costs in the form of vouchers for youth startups within three years of establishment, allows free purchase and use of private online tax accounting programs in the non-face-to-face era.

Oh Ki-woong, Director of Startup Promotion Policy at the Ministry of SMEs and Startups, said, "We will strengthen policy support reflecting environmental changes such as digitalization and onlineization to ensure that the startup enthusiasm from last year continues and expands this year." He added, "In particular, we will make every effort to operate projects centered on user convenience such as non-face-to-face to overcome COVID-19."

Announcements will be made according to the schedule of individual projects in the future. Detailed information on project applications can be found on the Startup Support Portal KStartup (www.k-startup.go.kr) and the Ministry of SMEs and Startups website.