"Starting a Business at 28, Raising 25 Billion Won Investment... Youth Technology Startups Are the Answer"

Minister Lim Hye-sook of the Ministry of Science and ICT Holds Meeting with Young Tech Entrepreneurs in Research and Development Special Zone on the Afternoon of the 13th

[Asia Economy Reporter Kim Bong-su] "Young people, invest in science and technology startups." Kim Bu-gi, CEO of Standard Energy Co., Ltd., a KAIST laboratory startup, founded the company at the age of 28 and developed the world's first high-efficiency and safe vanadium-based battery. The vanadium battery is so safe that it does not catch fire even when pierced with an awl, and its materials are easy to procure, attracting a total investment of 25 billion KRW from SoftBank Ventures and others.

The government is promoting such cases to encourage youth technology startups. On the afternoon of the 13th, Minister Lim Hye-sook of the Ministry of Science and ICT visited Daejeon Research and Development Special Zone Promotion Foundation and held a meeting with young company CEOs and employees residing in the special zone, explaining the startup support system and support programs of the research and development special zone.

At this event, young startup CEOs vividly introduced their innovative startup stories based on their own experiences. They also discussed the difficulties faced by young entrepreneurs at the forefront of technology commercialization and the support policies they hope the government will provide.

The Ministry of Science and ICT introduced various support measures unique to the research and development special zone that can help young startups, such as the ‘Research Institute Company’ and ‘Advanced Technology Company’ systems, the special zone development project and special zone fund, and regulatory exceptions for new technology demonstrations. Research institute companies and advanced technology companies receive funding of 200 million to 500 million KRW per project, as well as national and local tax reductions and market development support. From 2005 to 2019, among 99 KOSDAQ-listed companies within the research and development special zone, 29 companies benefited from the research institute company or advanced technology company systems. 54% of high-growth companies that increased their sales by more than tenfold received support from the special zone development project.

Participants also proposed policy ideas while urging various supports to resolve difficulties faced by young startups.

The Ministry of Science and ICT plans to further expand the K-Leading Research Institute Company, introduced for the first time this year, next year. Promising young companies will receive R&D funding (up to 1.5 billion KRW), investment mentoring, special zone fund (123.4 billion KRW), and overseas market development support. Support for spaces for young people will also be strengthened, with expansions of coworking spaces and research institute company hub spaces within the Daedeok Research and Development Special Zone.

Minister Lim said, “We will strengthen support policies for the research and development special zone to contribute even a little to the passion and courage of young people dreaming and challenging startups,” adding, “We will mobilize all science and technology resources within the research and development special zone to activate technology startups and focus on corporate growth.”