South Korea Sets Sights on Becoming Global Hub for Startups
South Korea has unveiled an ambitious plan to become a global hub for startups and nurture billion-dollar companies, known as unicorns. Led by President Yoon Suk Yeol, the South Korean government has launched the Comprehensive Startup Korea Plan to support entrepreneurship and innovation both domestically and internationally. This strategic move aims to foster the growth of startups and create an environment conducive to their success.
At a recent Startup Korea Strategic Meeting, President Yoon emphasized the need to build a world-class startup infrastructure and establish South Korea as a global startup hub. The government aims to provide active support to young entrepreneurs, enabling them to freely launch businesses and expand into the global market.
The Comprehensive Startup Korea Plan sets ambitious goals to be achieved by 2027. One of the primary objectives is to nurture five companies to become world-leading unicorns with valuations exceeding $1 billion. In addition, the plan aims to elevate Seoul’s position to 7th in the rankings for startup and venture ecosystems, achieve a venture investment scale of $10.6 billion, and increase the local technology-based startup rate to 40 percent.
To facilitate the global expansion of South Korean startups, the government plans to establish startup centers worldwide. These centers will collaborate with major corporations to provide tailored strategies for entering international markets. As part of this initiative, the government will establish the Startup Korea Fund in collaboration with the private sector, with a total size of $1.51 billion by 2027. This fund will support the global expansion of deep tech startups.
A significant aspect of the plan is the shift towards a private sector-led approach to venture investment. The government is encouraging collaboration between large corporations and startups in key sectors such as system semiconductors, bio-health, future mobility, and artificial intelligence, among others. Regulatory improvements are being considered to facilitate investments by large corporations in startups.
South Korea is also making efforts to attract foreign entrepreneurs and talent. Changes to visa requirements for specialized personnel and the introduction of startup visas are being considered to make it easier for foreigners to start businesses and work for startups. Initiatives such as the K-tech college program aim to connect international students with software education provided by domestic companies, encouraging their employment in South Korean startups.
The government is introducing the Global TIPS program, which provides matching support to startups receiving investments from foreign venture capital firms. This program aims to boost international collaboration and attract foreign investments. Furthermore, restrictions on corporate venture capital funds held by general holding companies are being lifted to encourage strategic investments in startups.
South Korea’s comprehensive plan to become a global startup hub and nurture unicorns represents a significant shift in its entrepreneurial landscape. With a focus on private sector-led growth, international expansion, and collaboration between startups and large corporations, South Korea aims to propel itself into the ranks of the world’s top entrepreneurship nations. By supporting innovation and entrepreneurship, the government seeks to drive economic growth and technological advancement.
