President Lee Meets Youth Startups: "Society Too Harsh on Failure... 1 Trillion Won Re-Challenge Fund Is Insufficient" (Comprehensive)

Attending the 'Youth Startup Imagination Concert':
"We Will Lead the 'Third Venture Boom'"
Establishing a "Re-challenge Fund" to Enable Recovery After Failure
Considering Expanded Tax Support by Growth Stage
Also Participated as a One-day Judge at the IR Pitching Event

President Lee Jaemyung, in celebration of 'Youth Week,' met with young startup founders and remarked, "Our society seems too harsh on failure. While those who try again may not always be given preferential treatment, I will strive to ensure that a second attempt is not discriminated against compared to a first challenge." President Lee also announced the creation of a 1 trillion won re-challenge fund to support the recovery and growth of youth startups.

Yonhap News Agency

On September 17, at the Startup Square in Seongnam, Gyeonggi Province, President Lee made these remarks during the 'Youth Startup Imagination Concert.' He said, "We live in a world where, once you fall, it is hard to get back up. In the past, people used to say 'failure is the mother of success' and 'it's worth enduring hardship when you're young,' but now, I hear people say you might get slapped for saying such things. These days, failure is seen as the end, and opportunities to try again are not offered as often."

President Lee continued, "If you provide joint guarantees and your business fails, you become a credit delinquent and are prevented from engaging in normal economic activity ever again due to restrictive systems. In fact, among people with the same abilities, those who have experienced failure are statistically much more likely to succeed," he added.

President Lee pledged to create an environment where people can get back on their feet even after failing. He stated, "We must now build an environment in which bold challenges and even failures can lead to another attempt. This is my own commitment."

He also pointed out that the 1 trillion won re-challenge fund currently being promoted by the government seems insufficient. President Lee said, "I have tried this on a small scale in Seongnam City and Gyeonggi Province, and the actual success rate was high. The 1 trillion won re-challenge fund being promoted by the government seems a bit small." He promised, "If we cannot create new technologies and new markets, our very survival is at stake. The government will do its utmost to support and encourage the challenges of young people so that we can become an innovative and entrepreneurial nation."

This Imagination Concert was held in honor of 'Youth Day' to hear the opinions of young startup founders and to present the new government's startup support policies. About 100 participants, including startups, investors, and related associations and organizations, attended the event.

Doubling the Mother Fund Investment Budget... Considering Expanded Tax Support by Growth Stage

Yonhap News

Prior to the Imagination Concert, the Ministry of SMEs and Startups announced the 'New Government Startup and Venture Policy Vision,' with the goal of ushering in a third venture boom. This policy vision expresses the government's commitment to providing full support to realize a dynamic startup ecosystem where young people's ideas lead to innovation and deep tech startups such as those in artificial intelligence (AI) can grow rapidly.

The Ministry will first double the mother fund investment budget to foster a 40 trillion won venture investment market, extend the fund's lifespan, and improve the venture investment system to attract more private capital into the venture investment market. The government is also considering expanding tax support for new industry youth startups and regional venture investments, as well as expanding tax benefits for investments in late-stage companies and secondary funds, thereby increasing support at every stage from startup to growth and exit.

A safety net will also be established so that experiences of failure become valuable assets. The government plans to expand the prohibition of joint liability, currently limited to venture investment associations and companies, to include startup planners and individual investment associations. In addition, a total of 1 trillion won in re-challenge funds will be created by 2030 to ensure that young entrepreneurs who restart their businesses can attract sufficient investment. The K-Startup Startup Support Portal will be enhanced to serve as the primary gateway connecting various support organizations and startups, providing integrated consulting in areas such as legal, management, and tax, so that startups can immediately think of the portal when facing difficulties during their growth process.

The government will also promote the 'Startup Rookie Project,' where ideas lead to innovation. Through the 'Everyone's Startup Platform' and 'Startup Audition,' about 1,000 'startup rookies' who take the lead in challenges will be discovered. Outstanding founders will be nurtured through a 'venture studio' approach, where professional accelerators and venture capital firms provide close support from initial investment to hands-on incubation. By 2030, 11 trillion won in innovation funds will be supplied, including 3 trillion won in venture funds and 8 trillion won in technology guarantees, to support early-stage and young entrepreneurs.

With the aim of fostering next-generation AI and deep tech unicorns (unlisted startups valued at over 1 trillion won), the government will launch the 'NEXT UNICORN Project,' a 13.5 trillion won initiative to provide focused investment at each stage of growth for promising companies. Promising unicorn-level companies identified and nurtured through this project will be supported by the National Growth Fund, which was launched this year, to build an 'investment growth ladder' and foster advanced technology companies. In addition, a cross-ministerial cooperation system will be established to foster startups in key technology fields such as AI, defense industry, and climate tech, in partnership with relevant ministries.

To support bold overseas expansion, a 'Startup and Venture Campus' (tentative name) will be established in Silicon Valley, USA, to provide integrated services for startups to settle abroad. Furthermore, the government will build a 'K-Open Innovation Hub' (tentative name), a platform to enable startups to collaborate extensively not only with large corporations but also with mid-sized and small businesses and public institutions. Opportunities for collaboration with global big tech companies such as Google and Nvidia will also be expanded.

During the subsequent Imagination Concert, six startups in youth and deep tech sectors discussed topics such as youth challenges, deep tech, and global expansion with President Lee. The youth panel included Hwang Hyeonji, CEO of S'more Talk; Hong Ilho, CEO of FactoSquare; Lee Seyoung, CEO of RYUTEN Technologies; Park Jaepil, CEO of Nara Space Technology; Kim Jongkyu, CEO of SixtyHertz; and Jeong Jiha, CEO of Tripbtoz.

Participants at the concert made several suggestions: expanding government support for youth and early-stage startups; increasing participation of deep tech startups, such as those in AI, in large-scale policy projects; increasing government attention to the defense and climate tech sectors; and providing support for local market entry to facilitate global expansion. President Lee also participated as a panelist, engaging with young people across three key sessions: youth challenges, deep tech, and global expansion.

Meanwhile, before the concert, President Lee visited startup exhibition booths, experienced humanoid robots, and served as a judge at an investor relations (IR) pitching event, encouraging startups. The presidential office stated that this talk concert was an opportunity to witness the boundless imagination and intense deliberation of young people, and that the government will create an environment where youth startups with innovative ideas can freely take on new challenges, reflecting the opinions gathered at the event.