Ministry of SMEs and Startups to Support Technology Development with 1.4097 Trillion KRW This Year

2024 Integrated Announcement for Small and Medium Enterprise Technology Development Support Projects

The Ministry of SMEs and Startups announced on the 16th that it will conduct the "2024 Integrated Announcement for SME Technology Development Support Projects" for research and development (R&D) projects totaling KRW 1.4097 trillion.

The Ministry's R&D projects will enhance investment efficiency through a large-scale restructuring of the project framework this year and significantly expand private-linked R&D investments in the deep tech sector. It also plans to strengthen support for strategic technology fields and global expansion and cooperation.

First, KRW 168.6 billion will be allocated to private-led R&D. When startups in new industries and tech-based innovative companies receive investments from private sources such as venture capital (VC) by proving their technological capabilities, the government plans to greatly expand private investment-linked R&D that provides follow-up support. To enable rapid mass production following product development and generate sales results, large-scale funds will be provided through loan methods, and a loan-linked R&D model will be promoted, where loans are recovered after project success and reinvested in excellent projects.

KRW 62.1 billion will be supported for R&D in strategic technology fields. To this end, a separate track will be established to support future innovation leading technologies with significant ripple effects such as artificial intelligence (AI), autonomous driving, and aerospace), and a systematic support system will be prepared to promote localization of core materials, parts, and equipment (SoBuJang) strategic technologies and proactive responses to the global value chain (GVC).

KRW 26.7 billion will also be allocated to R&D for global expansion and cooperation of innovative companies. The plan is to expand R&D support to lead future technologies of innovative companies with global expansion capabilities such as overseas certification and export performance. In particular, a competitive R&D method, where the same goal is developed in different ways, will be newly introduced to support companies with global competitiveness. Additionally, a dedicated global startup R&D project aimed at entering the world market from the startup stage will be promoted, and global R&D cooperation hubs will be established to operate local information surveys and networking programs.

KRW 51.8 billion will be provided to expand innovation growth opportunities for regionally excellent technology SMEs. The Regional Small and Medium Venture Business Administration, which provides close support at SME sites, will plan R&D projects linked to regional industries and select excellent companies to support R&D innovation of regional companies. The Ministry plans to improve the system for solidifying R&D project operations by strengthening the expertise of R&D selection evaluations and enhancing verification systems to prevent similar or overlapping support.

Kim Woo-sun, Director of Technology Innovation Policy at the Ministry of SMEs and Startups, said, "This year will be the first year of a new leap for SME R&D as large-scale structural reforms and institutional innovations in SME R&D projects are simultaneously implemented," adding, "We hope that bold R&D innovations, which have not existed before, will simultaneously achieve the government's investment efficiency and companies' innovative growth."