Updated February. 25, 2014 09:16
Start-ups founded by top-level technological professionals such as professors and researchers will receive up to 900 million won (838,769 U.S. dollars) in support by the government. Those starting a business after working as intern at venture companies will also be granted with 100 million won (93,196 U.S. dollars) from the government.
The Small and Medium Business Administration reported 2014 work plans to President Park Geun-hye Monday, which included increasing the number of start-ups led by highly skilled professionals in technology and raising success rates of start-ups.
To facilitate start-ups by professionals with top-level technological skills, the small business administration will make concentrated support to start-ups founded by those in the private sector. If the technological firm set up by professors and researchers get over 100 million won (93,196 U.S. dollars) in investment from professional angel investors or venture capital, the administration will finance the company 300 million won (279,589 U.S. dollars) in business promotion, 500 million won (465,983 dollars) in technology development and 100 million won (93,196 dollars) in overseas marketing over three years. As a result, total financial support will reach 900 million won(838,769 dollars). The administration plans to support 150 technological start-ups through 2017 via this project.
Head of Small and Medium Business Administration Han Jung-hwa said, "Start-ups have increased but those starting technology firms remain sluggish," adding, "The project focused on reducing opportunity costs on starting a business to help skilled technological talents feel attempted to start a business."
Starting from this year, if a university graduate starts business after working at a venture company for more than a year, he or she will get up to 100 million won(93,196 U.S. dollars) in support from the small business administration. The administration said the success rate of starting business will be high since it is followed by on-site work experience. It said it will select 300 people as start-up interns by 2017. It also plans to foster 10,000 young CEOs by 2017 through the youth start-up academy and start-up college initiated by the Small and medium Business Corporation.
In addition, a venture fund worth 2 trillion won (1.86 billion dollars) will be created this year and a project to foster the so-called hidden champions will also start this year to support export and small and medium companies, with a goal to foster as many as 1,000 of them by 2017. The administration will announce concrete support plans for exporting companies in July.