The government has launched all-around investment support for a "third venture boom." The focus is to consolidate young people's ideas into innovation and to accelerate the growth of deep-tech startups such as artificial intelligence (AI). To that end, it will supply 11 trillion won to young founders and 13.5 trillion won to deep-tech corporations.
The Ministry of SMEs and Startups on the 17th announced the "new government startup and venture policy vision" at Startup Square. About 100 people attended the event, including related ministries such as the Ministry of Economy and Finance, the Ministry of Environment, and the Artificial Intelligence Committee, as well as startups, large corporations, and associations and groups.
◇ Support for bold startup attempts by youth… "Hands-on incubation and funding"
First, it will push the "Startup Rookie Project," in which ideas lead to innovation. Through the "Startup-for-All Platform" and the "Startup Audition," it will identify about 1,000 "startup rookies" who take the lead in challenges, and outstanding founders discovered will be nurtured through a "venture studio" model in which professional accelerators (ACs) and venture capital (VC) provide everything from initial investment to close incubation.
In addition, by 2030 it plans to supply a total of 11 trillion won in innovation funds for early-stage and young founders, including 3 trillion won in venture funds and 8 trillion won in technology guarantees.
◇ Fostering AI and deep-tech unicorns… A total of 13.5 trillion won to be injected
Aiming to foster next-generation AI and deep-tech unicorns, it will fully push the "Next Unicorn Project (NEXT UNICORN Project)." The project will invest a total of 13.5 trillion won in promising corporations at each growth stage. For promising corporations nurtured to unicorn level under this project, it plans to build an "investment growth ladder" in connection with the National Growth Fund.
Support for overseas expansion will also be strengthened. It will establish a "(tentative name) Startup and Venture Campus" in Silicon Valley, United States, to provide integrated services needed for overseas settlement, and it will also expand cooperation opportunities with global big tech such as Google and Nvidia.
In addition, it will build the "(tentative name) K Open Innovation Hub," a platform that allows startups to collaborate widely not only with large corporations but also with medium-sized and small corporations and public institutions.
◇ Expanded government support… Improvements to the venture investment system
The government plans to channel private capital into the venture investment market. It will double the budget for contributions to the parent fund, extend the duration, and, alongside improvements to the venture investment system, create a 40 trillion won venture investment market.
Tax support will also be strengthened. Authorities are reviewing all-around support from startup to growth and exit, including expanding tax benefits for young startup corporations in new industries and for regional venture investment, and support for investment in late-stage corporations and secondary funds.
The safety net will also be strengthened so that experience with startup failure can serve as a springboard for another attempt. The prohibition on joint liability will be expanded from existing venture investment associations and companies to startup planners and individual investment associations. In addition, by 2030 it will create a total 1 trillion won "retry fund" to help young people who are starting up again attract investment.
It will also expand and reorganize the K Startup startup support portal into a "one-stop support window" for founders to provide integrated consulting in law, management, and taxation.
Minister Han Seong-suk of the Ministry of SMEs and Startups said, "We will swiftly push the 'new government startup and venture policy vision' by reflecting the opinions gathered through this talk concert," adding, "Additionally, based on tasks identified during the venture and startup policy field tour, we will establish the '(tentative name) comprehensive plan for a leap to the world's top four venture powers' in the second half of the year."
Meanwhile, on the day, a youth startup imagination concert was also held, creating a venue where government officials listened to and discussed the difficulties of young founders. In addition, an investment investor relations (IR) session for securing funds, an exhibition for corporate publicity, and collaboration through open innovation were held simultaneously.