According to Pulse by Maeil Business News Korea,

The Korean government pledged doubled support and deregulations to groom startups in emerging industries.

The Ministry of SMEs and Startups on Tuesday finalized its three-year support plan for young and small enterprises with a goal to increase startups to 280,000 by 2023 from current 229,000. It aims to extend life of ventures, raising five-year survival rate for businesses from current 31.2 percent to 40 percent. Five-year turning point is deemed crucial for survival of startups.

Under the upgraded support program, the ministry will double its spending on businesses in the emerging industries by allocating 40 percent of the state support budget to them over next three years. It currently spends 20 percent of its budget.

It is also seeking to revise the startup support law to offer state aids up to 10 years since business`s foundation by raising the cap from seven years.

The ministry will offer extra support on startups in three designated promising areas – the so-called big three industries of future cars, biotech, and semiconductor; big data, network and artificial intelligence, which are referred as D.N.A.; and those for achieving carbon neutrality or net-zero carbon dioxide emissions.

For greater synergy, the ministry will relax regulations to help startups make easier access to new opportunities.

Capsule-based craft beer breweries that do not need fermentation and maturation machines would be exempted from installing such facilities following the revision in the related law. Medical equipment companies will be allowed to promote their crowdfunding campaigns if they have prototypes available.



By Chun Beom-joo and Cho Jeehyun

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (August 4, 2021)