Young Research Startup Companies Appeal "Management Difficulties Due to COVID-19 Spread"

Urgent Call for Countermeasures at Meeting with Ministry of Science and ICT on the Afternoon of the 3rd

Reference photo. Exterior view of Daedeok Research and Development Special Zone Support Headquarters.

[Asia Economy Reporter Kim Bong-su] Young research institute companies facing crisis due to the initial spread of COVID-19 have urged continuous support for their survival.

Representatives of seven young research institute companies located in government-designated 'Research and Development Special Zones' requested this during a meeting with Yong Hong-taek, 1st Vice Minister of the Ministry of Science and ICT, on the afternoon of the 3rd, stating, "The Research and Development Special Zone Promotion Project has been greatly helpful not only for early-stage technology commercialization and market entry but also for expanding networks.”

The government is fostering five metropolitan special zones and twelve small-scale special zones nationwide as innovation clusters under the Research and Development Special Zone Act. It also operates the Research and Development Special Zone Promotion Foundation to promote R&D among industry, academia, and research institutes, and supports commercialization of public technologies and startups.

At the meeting with Vice Minister Yong, representatives from Dream Ace Co., Ltd., Podimix, Seiga, Developer Noah Co., Ltd., Naon CS Co., Ltd., ▲Girim Co., Ltd., and ▲Bloom Us Youth expressed difficulties in early settlement due to the continued spread of COVID-19. Accordingly, they requested multifaceted support for startups to sustain growth, including accelerating support, expanded funding for prototype production and commercialization, investment linkage, and market development.

Research institute companies are technology-based startup models in R&D special zones that combine the technology of public research institutions with corporate capital and management know-how. Supported through R&BD and tax reductions, these companies have higher survival rates and are growing faster than general startups, with 1,210 established as of the end of June.

In this regard, the Ministry of Science and ICT announced last October its intention to strengthen customized support by growth stage this year under the 'Research Institute Company Innovation Growth Strategy.' It plans to prepare various programs (such as the K-Leading Research Institute Company Project) to help startups grow into strong small and medium enterprises through cross-ministerial linked investment support, market strategy consulting, marketing, and sales channel support.

Vice Minister Yong said, "I support the young representatives who contribute to regional development through the challenging choice of technology startups," adding, "To spread the enthusiasm for technology startups among young people and the second venture boom, we will reduce the burden of failure and strengthen support for young people's challenges and technology startup activation through continuous institutional improvements."