Supporting 'Startup Acceleration'...
Nurturing Future Growth Engine Companies
The Ministry of SMEs and Startups and the Korea SMEs and Startups Agency (Jungjingong) announced on July 7 that they have allocated an additional 200 billion KRW for the Innovative Startup Commercialization Fund through the second supplementary budget, and will focus on fostering venture and startup companies with outstanding technological business potential.
With the passage of the second supplementary budget bill at the National Assembly plenary session on July 4, the total supply of SME policy funds by Jungjingong this year has increased from 5.6307 trillion KRW to 5.8307 trillion KRW.
Jungjingong provides Startup Foundation Support Funds to SMEs within seven years of establishment to promote startup activity. The interest rate is set 0.3 percentage points lower than the base rate for SME policy funds, making it the lowest among all Jungjingong policy fund loan programs. Companies can borrow up to 500 million KRW per year for operating funds and up to 6 billion KRW per year for facility funds through direct loans.
In particular, Jungjingong will focus support on startups in the ten strategic sectors, such as artificial intelligence (AI) and semiconductors, that require strategic nurturing. For emerging industries, eligibility is expanded to companies within ten years of establishment. In addition, companies selected for the Super Gap Startup 1000+ Project will receive an additional 0.1 percentage point reduction in interest rates, and the maximum annual loan limits will be raised to 1 billion KRW for operating funds and 10 billion KRW for facility funds.
Applications for Jungjingong policy funds are accepted online during the first four days of each month. This month, companies located in Seoul and other regions can apply from July 7 to 8, while those in Incheon and Gyeonggi can apply from July 9 to 10 via the Jungjingong website.
Kang Seokjin, Chairman of Jungjingong, stated, "Startup funding is in high demand on the ground and is expected to serve as a catalyst for the growth of SMEs and startups. In particular, we plan to focus our capabilities on further expanding support for promising startups in super gap sectors that will lead the future national economy."
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