Ministry of SMEs and Startups Announces 'Three-Year Plan for Supporting Startup SMEs'
Promoting Startup Growth through Private-Led + Government Support Approach
Expanding Startup Ecosystem Base and Actively Supporting Overseas Expansion
[Asia Economy Reporter Kim Bo-kyung] The government plans to double the budget for supporting startups in new industries and expand the business age criteria for commercialization support from the current 7 years to 10 years. While expanding startup support programs led by the private sector and backed by the government, such as TIPS and in-house ventures, it will newly designate 'Startup-Centered Universities' to foster regional startup ecosystems.
The Ministry of SMEs and Startups (MSS) reviewed and finalized the 'SME Startup Support Plan (2021?2023)' at the SME Policy Deliberation Committee held on the 3rd, outlining the direction and strategy for startup policies over the next three years. The goal is to turn the recent heated startup enthusiasm into tangible results and nurture innovative startups that will lead the digital economy.
Expansion of New Industry Startup Budget... Fostering Startups through Public-Private Cooperation
First, the MSS will allocate more than 40% of its startup commercialization budget to new industry startups, up from the current level of about 20%. Through amendments to the Startup Support Act, the business age criteria for commercialization support in new industry sectors will be extended from 7 years to 10 years.
The BIG3 sectors?semiconductors, future vehicles, and bio-health?along with data, networks, and artificial intelligence (D.N.A), and carbon neutrality have been set as three promising fields. Related startups will be intensively nurtured through separate projects.
Additionally, policy funds focused on technology commercialization startups will be expanded, and guarantees will be increased primarily for youth and early-stage startups. Through projects like the 'Eodream Project,' new startup development personnel will be supplied, while funds for each growth stage will be increased, including a newly established youth startup exclusive fund of approximately 100 billion KRW.
The approach to nurturing innovative startups is based on cooperation and coexistence. Startup support programs led by the private sector and supported by the government, such as the TIPS program and in-house ventures, will be expanded.
The 'Large-Startup Solver Platform,' where large corporations and startups collaborate, will be operated in earnest from this year, divided into three tracks: ▲ Fourth Industrial Revolution fields, ▲ Big Data-based Artificial Intelligence technology, and ▲ BIG sectors.
Furthermore, the function of the K-Startup Center, a hub for startups' overseas expansion, will be strengthened, and globalization will be supported through new overseas proof-of-concept (PoC) support.
Fostering Regional Startup Ecosystems... Expanding Entrepreneurship Education
Efforts will also be made to foster regional startup ecosystems. The 17 Creative Economy Innovation Centers nationwide will be reorganized as regional startup hubs to connect regional startup bases and intensively nurture region-specific startups.
In the second half of this year, about five universities with excellent startup support systems, infrastructure, and youth settlement environments will be newly designated as 'Startup-Centered Universities.' Customized support for various startup policy targets, such as youth and women, will also be strengthened.
The startup boom will be further expanded through support for startup exchanges and cooperation. 'COMEUP' will be developed into the world's top startup festival beyond Asia, and the number of participating ministries in 'Challenge! K-Startup' will be expanded to 10 within this year.
To spread entrepreneurship, the government will train startup education experts, operate entrepreneurship schools, and establish a collaborative startup education system centered on startup education hub universities.
Establishing a Startup-Friendly Institutional Foundation... "Improving 5-Year Survival Rate to 40%"
The government will build a communication platform where the government and startups can share the latest policies, technologies, and market trends in real time and work to resolve regulations. Legal grounds for startup leave of absence will be established, and approval procedures necessary for faculty startups will be simplified by the end of this year.
Standardization of application documents for startup support projects and simplification of post-management procedures based on autonomy will help startup companies focus solely on their startup activities.
This plan will be disclosed to the public through a separate notice. The MSS expects that this plan will create about 280,000 technology startups annually and improve the entrepreneurship ranking from 9th to 4th worldwide. Through innovation in the startup ecosystem and focused support for promising startups, the 5-year survival rate of startup companies is expected to improve from the current approximately 31.2% to 40%.
Minister Kwon Chil-seung of the MSS stated, "The role of innovative startups is very important to harness the recent second venture boom and startup enthusiasm as a driving force for future economic innovation and job creation. The government will communicate with startups and cooperate with various startup support organizations to make Korea the world's best innovative startup nation."
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