The Korean government has announced ambitious plans to create a $28.7 billion (40 trillion won) venture investment market to realize the nation’s third venture boom, signaling a major commitment to fostering innovation and entrepreneurship.

The Ministry of SMEs and Startups (MSS) hosted the “Youth Startup Imagination Concert” on September 17 at Startup Square in Pangyo, Gyeonggi Province. The event brought together over 100 participants, including officials from related ministries such as the Ministry of Economy and Finance, Ministry of Environment, and AI Committee, alongside startups, large corporations, and various associations.

Prior to the concert, MSS unveiled the “New Government Startup and Venture Policy Vision,” which demonstrates the government’s commitment to creating a dynamic startup ecosystem where young people’s ideas lead to innovation and AI-powered deep tech startups can rapidly scale.

Challenging Entrepreneurship for All

To support youth entrepreneurship, the government will launch the “Startup Rookie Project,” designed to transform ideas into innovation. Through the “Entrepreneurship Platform for All” and “Startup Audition” programs, the initiative aims to discover approximately 1,000 aspiring “startup rookies” who lead the charge in innovation. Selected outstanding entrepreneurs will be nurtured through a “venture studio” approach, where professional accelerators and venture capitalists provide comprehensive support from initial investment to intensive incubation.

Additionally, the government plans to supply a total of $7.9 billion (11 trillion won) in innovation funding by 2030 for early-stage and youth entrepreneurs, including $2.2 billion (3 trillion won) in venture funds and $5.7 billion (8 trillion won) in technology guarantees.

Dynamic Growth Centered on AI and Deep Tech

The government will launch the comprehensive “NEXT UNICORN Project” worth $9.7 billion (13.5 trillion won), focusing on stage-specific intensive investment in promising companies to foster next-generation AI and deep tech unicorns. The initiative will establish an “investment growth ladder” by linking and collaborating with the National Growth Fund launched this year for unicorn-level promising companies discovered and nurtured through this project.

Furthermore, the government plans to establish an inter-ministerial cooperation system with relevant ministries for startup development in core technology sectors including AI, defense, and climate tech.

To support ambitious global expansion, the government will establish a “(tentative) Startup and Venture Campus” in Silicon Valley, USA, providing integrated services necessary for startups’ overseas settlement. Additionally, the government will build the “(tentative) K-Open Innovation Hub,” a platform enabling startups to collaborate extensively with mid-sized companies, SMEs, and public institutions beyond large corporations, while expanding collaboration opportunities with global big tech companies such as Google and NVIDIA.

Strong Government Support Foundation

To create a $28.7 billion (40 trillion won) venture investment market, the government plans to double the budget for Fund of Funds contributions, extend the fund duration, and improve venture investment systems to attract more private capital into the venture investment market.

The government will also review expanding tax support for new industry youth startups and regional venture investments, as well as stage-specific tax support covering everything from startup to growth and exit, including investments in later-stage companies and secondary funds.

Additionally, the government will build a safety net that transforms failure experiences into valuable assets. It plans to broadly extend joint liability prohibition provisions, currently limited to venture investment partnerships and companies, to startup planners and individual investment partnerships. A “Re-challenge Fund” totaling $717 million (1 trillion won) will be established by 2030 to ensure re-starting young entrepreneurs can secure sufficient investment.

The government will also expand the K-Startup portal’s function as the primary gateway that connects various support organizations with startups and provides integrated consulting support, ensuring startups first think of this portal when facing legal, management, or tax difficulties during their growth process.

Industry Dialogue and Future Plans

During the subsequent Imagination Concert, six startups specializing in youth and deep tech sectors discussed three major sessions: Youth Challenge, Deep Tech, and Global expansion. Participants suggested expanding government support for youth and early-stage startups, increasing deep tech startup participation in major policy projects, enhancing government attention to defense and climate tech sectors, and providing local market settlement support for global expansion. MSS and related ministries engaged in discussions on these proposals.

MSS Minister Han Sung-sook stated, “We will expeditiously pursue the ‘New Government Startup and Venture Policy Vision’ by reflecting the opinions gathered through this talk concert. Additionally, based on tasks identified during venture and startup policy field tours, we will establish a ‘(tentative) Comprehensive Plan for Leaping into the Top 4 Venture Nations’ in the second half of this year.”