South Korea Launches KRW 1 Trillion Startup Fund

SEONGNAM, South Korea - President Lee Jae-myung stated that the government would establish a KRW 1 trillion (approximately US$716 million) fund for entrepreneurs who have experienced previous business failures, according to remarks delivered at a September 17 event.

Lee made the statement at Startup Square in Pangyo, Seongnam, in front of 100 attendees, comprising entrepreneurs, investors, and industry representatives.

The fund represents one element of the stated government objectives to develop a KRW 40 trillion (approximately US$28.6 billion) annual venture investment market.

The administration has designated venture market expansion as one of 123 policy tasks.

Stated targets include 50 unicorn companies, regionally distributed startup centers, extended operational periods of the Korea Fund of Funds, and increased government venture investment.

Lee stated, "Our society is too harsh on failure. In my experience, if a person has the same will and courage, someone who has failed is much more likely to succeed."

Government representatives present included Chief of Staff Kang Hun-sik, Policy Chief Kim Yong-beom, Senior Secretary for Economic Growth Ha Jun-kyung, Senior Secretary for AI Ha Jung-woo, and Minister of Small and Medium Enterprises Han Seong-sook.

Three executives presented operational issues.

Hwang Hyun-ji of S'more Talk stated that legal consulting, financial accounting, and business support presented greater difficulties than product development.

Lee Se-young of Wrtn Technologies requested support policies for unicorn companies pursuing global expansion.

Kim Jung-kyu of a social venture company requested increased support for enterprises with social and economic objectives.

Lee stated the government would expand one-stop services for entrepreneurs and examine incorporating Environmental, Social, and Governance components into the Tech Incubator Program for the Startup initiative.

The president cited the 2018 suspension of ride-sharing service Tada, following opposition from the taxi industry. Lee stated that extended dialogue and alternative solutions might have yielded different outcomes.

The event took place during "Youth Week," which preceded "Youth Day."

Korea Gallup data indicates 45 percent approval for Lee's administration among voters aged 20-29, compared with 47 percent among voters aged 70 and above.

The presidential office scheduled a senior staff meeting for September 18 to review youth policies and a town hall meeting with young people for September 19.

Senior Secretary for Political Affairs Woo Sang-ho stated the government would conduct polling among younger demographics to identify policy priorities.

Lee toured exhibition booths featuring startup technologies and participated as an evaluator in startup presentations, posing questions regarding revenue models and data protection protocols.

Officials described the initiative as the third venture industry expansion, following previous periods in 1999 and 2017.

The government stated that pursuit of the KRW 40 trillion venture investment market target is outlined in policy frameworks.