The Ministry of SMEs and Startups (MSS) of South Korea announced on Sunday its “2025 Scale-Up TIPS (Standard Track) Business Support Plan,” aimed at fostering the growth, innovation, and global competitiveness of promising technology-intensive startups and venture firms.

The Scale-Up TIPS program is designed to support SMEs entering a full-fledged growth phase. Under the scheme, companies that attract over approximately USD 750,000(KRW 1 billion) in private investment from designated operators will be eligible for up to approx. USD 900,000(KRW 1.2 billion) in government-funded R&D support over three years. Companies that achieve follow-on investment or other notable milestones may receive up to approx. USD 1.5 million(KRW 2 billion) in equity investment from the Korea Venture Investment Corp.’s fund-of-funds.

Starting in 2025, the program will be divided into two tracks: Standard and Global. A new “Global Track” will be introduced to support companies targeting overseas markets, offering up to approx. USD 1.0 million(KRW 1.5 billion) in R&D funding over three years. To qualify, companies must meet more stringent requirements than the Standard Track, such as securing a specified level of foreign investment.

The 2025 Standard Track will support 102 startups in strategic technology sectors, including the top 10 “super-gap” fields, 12 national strategic technology areas, and carbon neutrality-related industries.

To intensify support in core areas like AI and biotechnology, a specialized support system will be implemented. Among the 24 existing operator consortiums, those with proven success in discovering and supporting R&D in these strategic fields will be designated as “specialized operators.” Going forward, strategic specialization will be a key evaluation criterion when selecting program operators.

The consortium model will also undergo reform to better address the diverse needs of startups. Operators will be allowed to modify or expand their consortium composition, and the evaluation and incentive system will be revised to prioritize actual scale-up outcomes.

In addition, each operator will be encouraged to appoint a dedicated coordinator to support R&D activities. These coordinators will act as project managers while also fostering collaboration between consortiums to ensure startups receive comprehensive support throughout the program.

The linkage between R&D support and equity investment will also be strengthened. Previously, companies could choose between R&D funding and equity investment after securing initial private investment. From 2025, the system will be restructured to integrate both support mechanisms—providing R&D funding first, followed by equity investment aligned with the company’s growth trajectory.

Further details will be provided at an online and offline information session scheduled for 2 p.m. on April 14. Interested companies are encouraged to contact one of the 24 designated operator consortiums or the ministry’s dedicated support department for inquiries and participation guidelines.

Between 2022 and 2024, South Korea’s Scale-Up TIPS program facilitated the injection of more than USD 1.1 billion (KRW 1.5 trillion) in combined public and private funding across 379 startup companies, according to the Ministry of SMEs and Startups.

Of this total, private investment led by designated operators accounted for approximately USD 437 million (KRW 583.3 billion). Notably, 111 of the supported companies—roughly 30% of all beneficiaries—went on to secure follow-on investments totaling USD 417 million (KRW 556.7 billion) from venture capital firms and other private investors.

The program has also seen measurable success in public listings. To date, a total of nine companies supported by Scale-Up TIPS have successfully completed Initial Public Offerings (IPOs), underscoring the program’s effectiveness in catalyzing private-sector investment and accelerating the growth of high-potential startups.

Yongsoon Park, Director-General for Technology and Innovation Policy at the Ministry, stated, “We have restructured the program to link support more closely with performance outcomes, such as through integrated investment mechanisms.” He added, “Through innovative R&D support models like Scale-Up TIPS, we aim to empower SMEs and startups to pursue ambitious technological development in strategic fields and establish themselves as key drivers of national economic growth.”