For the early-stage investment ecosystem to grow one step further, LIPS, regional investment, and the venture studio model must work together.
Jeon Hwa-seong, president of the Korea Startup Accelerators and Early Stage Investors Association (K-AIA), emphasized this at the 2026 Startup Investors Summit held on the 29th at the Asti Hotel in Busan.
Jeon first assessed that the domestic accelerator (AC) industry has achieved rapid quantitative and qualitative growth. From 2017 through the first half of 2025, the cumulative investment executed by ACs reached 3.8053 trillion won. Of that, early-stage corporations accounted for 65% of investments, indicating that ACs have established themselves as a core industry in the early investment market. The number of registered ACs also jumped from 37 in 2017 to 500 by the end of 2025.
However, Jeon pointed out that a market polarization problem exists behind this growth. Jeon said, "A structure in which funds and opportunities concentrate in a few ACs with investment track records and capabilities is becoming entrenched," and emphasized, "Beyond simple investment, ACs must also play an important role in directly nurturing early-stage corporations."
Jeon also mentioned the need to activate TIPS and LIPS in parallel. He explained that a dual-track strategy is needed in which technology-based startups receive research and development (R&D) funding and scale-up support through TIPS, while the culture, lifestyle, and local sectors are nurtured through LIPS. LIPS is a private investment-linked nurturing program that supports funds needed for corporate management—such as new product development and business advancement—for promising small merchants. The number of LIPS operators is rapidly growing, expanding from 30 in 2025 to 90 this year.
Jeon also attached significance to holding this event in Busan. He said, "This is a starting point for dispersing the Seoul metropolitan area–concentrated investment structure into the regions," and added, "LIPS needs to be activated as much as TIPS to grow a region-based startup ecosystem." He further noted, "The Ministry of SMEs and Startups' parent fund is also expanding significantly from the previous year, and region-matching funds will spread to many local governments, including Busan."
Jeon proposed division of roles and coexistence as the future direction of the AC industry. He said that VC-type ACs, which handle scale-up investments based on large capital, and general-type ACs, which broaden the base of the ecosystem by discovering and nurturing early-stage corporations, should differentiate according to their roles and coexist.
Lastly, Jeon Hwa-seong also mentioned the importance of venture studios (company building). He said, "Since a制度 improvement last Aug. made it possible for ACs to establish subsidiaries, we must build a virtuous cycle in which nurturing, investment, exit, and reinvestment continue through a venture studio model where ACs directly design business models and create and grow companies."