The Ministry of SMEs and Startups announced that it will launch the "All-in-one Product Development Pack" program this year to address the structural challenges faced by manufacturing startups during the product development process. The program's core objective is to provide a unified system that supports all stages of product development, from product design and prototype production to initial mass production.
Manufacturing startups often outsource the design, engineering, prototyping, and initial production processes to different companies before final mass production, often resulting in information gaps between processes. This often leads to repeated specification changes, schedule delays, and increased costs, often preventing final mass production, a major contributing factor to failure.
To address these issues, the Ministry of SMEs and Startups has introduced a system whereby a single specialized agency manages and supports the entire product development process. By having a single agency manage the entire process, the goal is to reduce information omissions and repetitive tasks, minimize unnecessary costs, and increase the likelihood of successful product development.
To this end, the Ministry of SMEs and Startups will select a specialized manufacturing organization. This organization will either directly support the manufacturing process of a manufacturing startup or connect with suitable partners to coordinate and manage the entire process, from design to prototype, molding, and initial mass production. The ministry plans to select approximately six organizations based on evaluations of private companies capable of supporting the entire product development process, including their manufacturing service capabilities, dedicated personnel, partner networks, and relevant track records.
After the host organization is selected, approximately 80 manufacturing startups with innovative ideas will be selected, with each company receiving up to 50 million won in product development support. Selected startups can select the necessary processes, such as design, engineering, prototyping, and initial mass production, based on their development stage and needs, and receive customized support.
Kyung-won Cho, Director of Startup Policy at the Ministry of SMEs and Startups, said, “The biggest challenge for manufacturing startups moving toward mass production is the problem that arises from the fragmentation of the process,” and added, “We will establish a continuous system from design to initial mass production through the product all-in-one pack to reduce initial product production failures and increase the speed of market entry.”
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