Recruiting Startups for Open Innovation with Mid-sized Companies

Recruitment of Participating Startups by the Ministry of SMEs and Startups Until June 11
Collaboration Opportunities with Socar, Daewoong Pharmaceutical, Kolmar Korea, and Others

The Ministry of SMEs and Startups announced on the 15th that it is recruiting startups to participate in the 'Mid-sized Company-Startup Open Innovation Challenge.'

This program is a new initiative launched this year by the Ministry to pave the way for open innovation and promote joint growth between mid-sized companies and startups. Although open innovation between mid-sized companies and startups is gaining momentum, as seen by the recent increase in investments by mid-sized company corporate venture capital (CVC) firms, mid-sized companies are still facing difficulties in participating in open innovation due to a lack of capabilities and experience.

Since last month, the Ministry has worked in collaboration with the Korea Federation of Middle Market Enterprises to solicit project proposals and conduct evaluations. As a result, 15 projects from mid-sized companies in various fields, including Socar, Daewoong Pharmaceutical, and Kolmar Korea, have been shortlisted as candidates. The Ministry plans to select and support around 10 final projects through subsequent startup matching, meetups, and presentation evaluations.

Selected startups will receive up to 120 million won in proof-of-concept funding, as well as customized support such as consulting, professional training, and networking necessary for collaboration. The partnering mid-sized companies will provide demonstration infrastructure, personnel, and know-how for project implementation. Outstanding startups may also be given opportunities for follow-up research and development (R&D).

Startups wishing to participate in the challenge can apply on the K-Startup website by June 11.

Cho Kyungwon, Director of Startup Policy at the Ministry of SMEs and Startups, stated, "Starting with this challenge, we will continue to expand open innovation with startups, which has so far been centered on large corporations, to include mid-sized companies and public institutions."