Ministry of SMEs and Startups-Samsung Electronics, Additional 30 Billion KRW Raised for 'Joint Investment Technology Development Fund'

Support for Small and Medium Enterprises to Develop Large Corporation Proposal Projects

Minister Kwon Chil-seung of the Ministry of SMEs and Startups (left) and Kim Hyun-seok, CEO of Samsung Electronics (CE Division), are taking a commemorative photo after signing an agreement at the "Ministry of SMEs and Startups-Samsung Electronics Joint Investment Technology Development Fund Establishment Ceremony" held on the 1st at Withwave in Yongin, Gyeonggi Province.

[Asia Economy Reporter Kim Cheol-hyun] An additional 30 billion KRW technology development support fund will be established to enable small and medium-sized enterprises (SMEs) to develop tasks proposed by large corporations. The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) announced on the 1st that it signed a business agreement with Samsung Electronics at WithWave in Yongin, Gyeonggi Province to establish a 30 billion KRW 'co-investment type technology development investment fund.'

Co-investment type technology development is a policy that encourages the spread of a win-win culture between large and small businesses by supporting SMEs to develop tasks proposed by investing companies through a fund jointly established by the Ministry and investing companies. Since 2008, a total of 769.8 billion KRW has been raised together with 96 large corporations and others, supporting 1,184 technology development tasks of 961 SMEs.

The fund operates by having large corporations propose tasks and then supporting the fund raised for SMEs that will solve those tasks. After selecting R&D tasks for SMEs, the Ministry and investing companies each contribute 50%. For medium-sized enterprises, 40% is contributed by the company and 60% by the Ministry. Notably, this year, the fund has achieved the creation of nearly 100 billion KRW annually, which the Ministry explained is due not only to the increased voluntary willingness of large corporations for win-win cooperation but also to the consensus on the importance of discovering future growth engines through open innovation to actively respond to the rapidly changing global environment.

Samsung Electronics first established 20 billion KRW in 2013 and has now added an additional 30 billion KRW. The newly established fund will be focused on enhancing the technological competitiveness of SMEs in next-generation product development technologies such as system semiconductors, artificial intelligence (AI), bio-health, robotics, as well as materials, components, and equipment sectors.

WithWave, where the agreement ceremony was held, is also an SME possessing excellent technology in the ultra-high-speed connector field. By receiving support from the co-investment type technology development, it has built a win-win cooperative relationship with Samsung Electronics, making it possible to expect the localization of 5G millimeter-wave ultra-high-speed communication equipment parts that were previously dependent on imports.

Minister Kwon Chil-seung said, "Competent SMEs can gain more growth opportunities through collaboration with large corporations, and large corporations can explore new possibilities through open innovation. I hope that innovation based on win-win cooperation will spread even further."