The government announced plans to foster 10,000 artificial intelligence (AI) and deep tech startups and 50 unicorn and decacorn companies by 2030. It also set a target to increase annual venture investment to around KRW 40 trillion.

The Ministry of SMEs and Startups on the 18th unveiled the “Comprehensive Strategy for Leap to a Top 4 Venture Powerhouse” in a joint briefing with relevant ministries at the Korea Federation of SMEs in Yeouido, Seoul, and announced these goals. Marking the 30th anniversary of the venture industry and the 20th anniversary of the Korea Fund of Funds, the plan aims to place ventures at the center of the national growth strategy.

The measures focus on strengthening government support around four pillars: technology, regions, talent, and investment. To promote technological innovation, part of the approximately 50,000 graphics processing units (GPUs) to be secured by the government will be allocated to ventures and startups. The government will also promote a “Next-Generation Unicorn Discovery and Fostering Project,” providing up to KRW 100 billion per company.

It will also establish pathways to pioneer new markets. Moving away from existing one-off verification methods, the government will shift to a structure that supports open innovation according to performance at each implementation stage. It plans to expand sales channels by adding venture company products to the list of items that public institutions are required to purchase. To support overseas expansion, “Startup & Venture Campuses” will be set up at major hubs such as Silicon Valley.

Support for regional ventures will also be expanded. Around 10 startup cities will be created mainly in non-capital regions to strengthen local startup hubs and expand startup parks. In addition, the government will pool regional innovation funds to create a “Regional Growth Fund” worth KRW 3.5 trillion and expand tax credits for venture investment corporations located in areas with declining populations.

Institutional improvements to attract domestic and foreign talent will also be pursued. The scope of companies recognized as ventures will be expanded to include mid-sized enterprises as part of regulatory adjustments. The government will carry out the “Startup for All Project,” under which 1,000 young entrepreneurs with ideas will be identified, 100 “Startup Rookies” will be selected through competitions, and follow-up support will be provided.

Funding measures to open an annual venture investment market of KRW 40 trillion were also presented. A dedicated national account for funds and retirement pensions will be established to build an investment platform under which the Korea Fund of Funds bears losses first. To stimulate private investment, tax incentives will be strengthened. The age limit of investee companies will be relaxed from the current 7 years to 10 years, and the tax credit rate for corporate contributions to venture fund-of-funds will be increased.

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