86% of Selected Companies Specialize in Top 10 Deep Tech Fields such as AI and Big Data
On May 26, the Ministry of SMEs and Startups announced that it has selected 50 "Baby Unicorn" companies with high potential to grow into global unicorns. The Baby Unicorn Fostering Program is part of the "Global Unicorn Project," which aims to discover innovative companies whose value has been validated in the investment market and accelerate their growth into unicorns with global competitiveness. Since its launch in 2020, a total of 350 companies have been selected through this initiative, including this year’s cohort. This year, 217 companies applied, and 50 were ultimately chosen, resulting in a competition ratio of approximately 4.3 to 1.
Among the 50 companies selected this time, about 86% (43 companies) possess technologies in one of the top 10 deep tech fields, such as AI and big data. On average, these companies have a corporate value of 32.1 billion won, have raised 5.61 billion won in investments, generate annual sales of about 4.4 billion won, and employ around 30 people. These promising companies have demonstrated their technological capabilities and corporate value in the investment market.
For example, among the selected companies, Sketchsoft provides a 3D drawing application service linked with generative AI. Through its interactive computer graphics software technology, users can automatically create 3D graphic blueprints using only 2D pen or touch input, and the company is generating sales in 120 countries worldwide. Eflow is an in-wheel motor manufacturer that has commercialized axial flux permanent magnet (AFPM) motors, which are compact and lightweight. This deep tech company possesses innovative technology that can be applied to next-generation mobility, robotics, and aerospace, all of which require small, high-output motors.
The selected companies will receive up to 300 million won in market development funds and up to 5 billion won in special guarantees from Korea Technology Finance Corporation. Starting this year, a "performance-linked guarantee system" will be introduced, under which companies that achieve certain milestones such as follow-on investment or sales will be eligible for additional guarantees without separate screening, thereby providing the capital needed for scaling up.
Oh Youngju, Minister of SMEs and Startups, said, "Since their selection, Baby and Pre-Unicorn companies have continued to attract follow-on investments and have succeeded in initial public offerings (IPOs), demonstrating tangible results. We will continue to expand policy support so that Baby Unicorn companies can move beyond 'Pre-Unicorn' status and leap forward as 'Global Unicorns.'"
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