This year, the budget of the Seoul Business Agency (SBA) has decreased by 10% compared to last year, but the research and development budget has increased by more than 12%. While other government ministries are reducing their research and development budgets, ours has actually increased.
Kim Hyun-woo, the head of the SBA, met with ChosunBiz on the 17th of last month at its headquarters in Sangam-dong, Mapo District, Seoul, and noted, "No matter how difficult it is, we must increase research and development to prepare for the future."
Established in 1998 as an executive agency to support the growth of small and medium-sized enterprises (startups) in Seoul, the SBA serves as a 'public accelerator' that promotes industries including startups. It effectively acts as the Small and Medium Business Department of the Seoul Metropolitan Government.
◇ "While late to interactive AI, let's lead in AI for everyday life"
According to the SBA, the research and development budget, which was 32.9 billion won last year, has increased to 37.5 billion won this year. It is notable that the AI-based research and development budget was increased from 3 billion won to 5 billion won to support the commercialization of AI convergence technologies. The number of projects also increased from 15 to 25. The initiative focuses on supporting semiconductors, manufacturing, and other fields that can converge with AI.
Kim said, "AI can accelerate innovation in all fields, not just specific industries. It is a key technology that can bring about changes comparable to the introduction of the internet," adding, "While we are late in developing generative AI conversation models based on large language models (LLMs) like 'ChatGPT,' we can lead in on-device AI that is implemented in everyday life."
The 'Seoul Innovation Challenge,' an innovation technology discovery and support program of the Seoul Metropolitan Government that started in 2017, plans to focus on supporting corporations that can create innovative value by integrating AI. It aims to provide production support funds of around 100 million won, enabling promising corporations with innovative ideas and new technologies to quickly validate their technologies and commercialize them.
Mobility Technology, which possessed high-precision mapping technology utilizing LiDAR and camera fusion sensors, is cited as a representative success story of the Seoul Innovation Challenge. Mobility Technology has received early funding for prototype production and research and development, accelerating its technology development and has conducted empirical tests, attracting over 20 billion won in cumulative investment and growing rapidly.
◇ First local government to collaborate with the Korea Technology Finance Corporation to support up to 3.6 billion won... "It will be an SBA hit product"
The SBA has also established seven global research and development projects in key sectors such as AI, quantum technology, creative industries, fintech, and robotics, focusing on supporting the global expansion of outstanding corporations. The aim is to go beyond simple participation in overseas exhibitions to support overseas testing and certification, and assist in expanding global networks.
The SBA also participated in the largest Seoul Integrated Pavilion ever created at the world's largest IT and consumer electronics exhibition, CES 2025, held in Las Vegas, USA, in January. It included 104 startups from 16 partner organizations, including the SBA, in an exhibition area of 1,040 square meters (about 315 pyeong), which is 1.5 times larger than last year, and 21 of those companies achieved the CES 2025 Innovation Awards.
The SBA will also work with the United Korean Founders (UKF) network of Korean entrepreneurs in Silicon Valley, playing a role as a bridge for effective entry of Seoul startups into the U.S. market.
The SBA has also introduced a new research and development program linked to the Korea Technology Finance Corporation, supporting up to 3.6 billion won per corporation this year. It is the first time a local government in the country has launched such a product in collaboration with the Technology Finance Corporation.
Under a special guarantee from the Technology Finance Corporation, corporations receiving 200 million won will receive an additional maximum support of 400 million won from the SBA, with the Technology Finance Corporation guaranteeing commercialization funds of 3 billion won. They can obtain funds at interest rates around 1%.
Kim said, "This is a project that can go beyond the level of supporting 200 million to 300 million won per corporation and allow for large-scale funding inputs to lead new technologies and markets," adding, "I expect it will be the SBA's top hit product this year."
◇ ‘Seoul Con’ that showcased Korea's status will expand with Alibaba this year
Kim, who has led the SBA since November 2021, cited 'Seoul Con' as a key achievement. The global influencer expo, Seoul Con, took place twice in 2023 and 2024, and last year, over 3,498 teams from more than 50 countries participated, showcasing Seoul's creative industries in beauty, fashion, content, and gaming.
Kim said, "This year at Seoul Con, we will partner with Taobao Global, a subsidiary of Alibaba," emphasizing, "More than 30 Chinese influencers (Wanghong) will come to the Dongdaemun Design Plaza (DDP) in Seoul, promoting excellent fashion and beauty products from Seoul in real-time through Taobao's live commerce, which is used by 900 million Chinese consumers."
Kim stressed that the startup community should seize the current economic situation as an opportunity. He said, "Now is the time for venture capital (VC) to start investing," advising corporations not to miss this opportunity and to focus more on technological development.