The Ministry of SMEs and Startups (MSS) unveiled a new initiative on Wednesday, February 5, called the “AI Core Fields and Promising AI Transformation (AX) Startup Development Project.” This initiative is designed to nurture AI startups that are poised to create new markets and economic value by integrating AI technology innovations with various industries on a global scale.

This program marks the inauguration of the Level 1 ‘Micro Super Gap’ initiative, a component of the ambitious three-phase ‘Super Gap Startup 1000+ Project’ unveiled in January. It is the first to be launched under the ‘Super Gap AI Startup Level Up Strategy,’ which was introduced in July 2024. The strategy focuses on cultivating high-growth AI startups capable of creating and expanding new markets within the AI ecosystem.

The announcement details plans to select 20 promising AI and AX startups. Here’s what the program entails:

Commercialization of Core AI Fields: Five AI startups in burgeoning sectors such as small language models (sLLM), manufacturing, biotech, and content will be selected. These startups will receive up to KRW 150 million (approximately USD 123,000) in funding to aid in technology commercialization and advancement. The Artificial Intelligence Industry Cluster Agency (AICA) will support these startups by providing access to infrastructure like GPU-based AI computing resources and demonstration centers.

Fostering Promising AX Startups: Fifteen AX startups, which exhibit innovative AI technologies that can enhance products and services across various industries, will be chosen from sectors such as manufacturing, biotech, and content. These sectors are identified for their potential economic and social impacts. Each selected startup will receive KRW 80 million (approximately USD 65,600) in collaborative funding, along with assistance in securing new sales channels.

Applications for this program will be accepted from February 5 to February 25. Startups that demonstrate exceptional performance will receive further support to enter global markets through the “Super Gap Startup” initiative.

In conjunction with this initiative, further projects under the “Super Gap AI Startup Level-Up Strategy” are set to be rolled out continuously. These include the ‘AI Super Gap Challenge,’ scheduled for announcement by the end of February, which aims to promote commercialization and develop sales channels through partnerships between global corporations and promising domestic AI startups.

In 2025, in collaboration with LG Electronics, the partnership scope in the on-device AI sector will expand to include other products such as TVs. Moreover, new collaborative opportunities in the vertical AI sector will be introduced with Qualcomm Korea, aiming to extend these partnerships to other major tech firms.

A new project, the ‘AI Regional Key Industry Connection Project,’ is slated for announcement in April. This project will link innovative AI startups with AX collaborations tailored to the AI technology needs of leading small and medium-sized manufacturing companies in regional key industries.

Minister OH Youngju emphasized the significance of artificial intelligence, stating, “Artificial intelligence is a critical area that impacts not only industries but also the future of our nation.” She added that this project is the first step in implementing the level-up strategy, with more supportive initiatives to follow to ensure its effective execution.