On the 18th, the Ministry of SMEs and Startups announced a comprehensive plan to transform Korea into one of the top four venture powerhouses, jointly with relevant ministries, at the Korea Federation of SMEs in Seoul. This plan is significant in that it is the first comprehensive plan to refocus the national growth strategy on ventures, focusing on four pillars: technology, region, talent, and capital.
The government has determined that, amidst the global technological transformation centered on AI and deep tech, unlisted ventures and startups are emerging as key players in economic growth and industrial innovation. This shift stems from the belief that, with major countries concentrating capital, technology, and talent based on venture ecosystems, existing growth methods alone will struggle to overcome structural limitations such as population decline and slowing growth.
The government has set goals for fostering 10,000 AI and deep-tech startups, creating 50 unicorns and decacorns, and entering the global venture investment market worth 40 trillion won annually. To achieve this, the government plans to go beyond short-term support and establish a sustainable venture growth structure that organically connects technology, capital, talent, and markets.
The first strategy proposes a path to global growth through technological innovation and market development. It will strategically allocate GPU resources to ventures and startups and focus policies on strategic industries such as AI, bio, content and culture, defense, energy, and advanced manufacturing. Furthermore, through the Next-Generation Unicorn Development Project, it will support up to KRW 100 billion in phased investments and guarantees per company, expanding its global presence.
The second strategy aims to spread innovation throughout the region and society. It aims to alleviate the metropolitan-centric structure by supporting re-startups, enhancing local startup hubs, and expanding the local investment base. It also fosters social ventures to strengthen social value creation.
The third strategy is to foster a talent-centered ecosystem. This will involve improving the venture capital system, establishing an investment and contract culture that meets global standards, and improving the stock option system to encourage the influx of talented individuals from Korea and abroad into ventures. Furthermore, a national support system will be established to foster entrepreneurship.
The fourth strategy is to improve the venture capital structure. We plan to expand the scale of venture investment by introducing Mother Fund 2.0, expanding private capital participation, and improving financial regulations. We also plan to establish a virtuous cycle of investment recovery and reinvestment through M&A and the revitalization of the secondary market.
The government plans to use the next month as a period for policy promotion and implementation preparation, and to implement key tasks in stages starting in the first half of next year, along with promoting key legislative tasks.
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