Han Seong-sook: "Fostering AI Companies to Become a Top Four Venture Powerhouse"

[Financial News] Han Seong-sook, Minister of SMEs and Startups, pledged to nurture Artificial Intelligence (AI) and Deep Tech companies to help Korea become one of the world’s top four nations in startups and ventures.
On the 14th, Minister Han attended a parliamentary audit by the National Assembly’s Industry, Trade, Energy, SMEs and Startups Committee. She stated, "We will focus our capabilities on the recovery and growth of SMEs and startups, supporting our companies so they can compete globally."
Minister Han explained, "This year, the Fund of Funds invested a total of 1.3 trillion won, and it is expected that venture funds worth 2.6 trillion won will be created." She added, "To strengthen the competitiveness of innovative AI startups, we have also swiftly executed a supplementary budget of about 350 billion won for commercialization and demonstration."
Looking ahead, the Ministry of SMEs and Startups plans to focus on the 'NEXT UNICORN Project,' which invests in AI and Deep Tech startups at each stage of growth.
Additionally, Minister Han mentioned plans to launch the 'Startup Rookie Project,' which discovers over 1,000 young entrepreneurs annually; introduce the 'Startup Studio' model, where accelerators and Venture Capital (VC) provide early-stage investment and close support; and establish a 'One-Stop Service Center' for startup consultations.
A 'Startup and Venture Campus' will also be established in Silicon Valley. Minister Han explained, "Through a campus where public and private support organizations participate together, we will help AI and Deep Tech startups expand overseas."
Minister Han also stated, "We will create a Venture Investment ecosystem where surplus funds from both the private and public sectors converge." She continued, "We will attract pension funds and Retirement Pension into the venture investment market and double the investment budget for the Fund of Funds."
She also highlighted the importance of smart transformation for manufacturing SMEs. Minister Han promised, "We will support the AI Transformation (AX) of manufacturing SMEs from the ground up to advanced levels," and "By fostering Smart Manufacturing Specialist Companies that support Digital Transformation and AX at production sites, we will further strengthen the foundation for manufacturing innovation."
She emphasized that the Ministry has restored and expanded the Research and Development for Small and Medium Enterprises budget, which had been cut under the Yoon Suk Yeol administration. This year’s R&D budget for SMEs is a record-high 2.2 trillion won.
To enhance SMEs’ ability to respond to global trade environments, the Ministry will expand the Export Voucher Program and foster key export items such as K-beauty, supporting the export growth and overseas expansion of SMEs.
Other major SME policies mentioned include implementing measures to prevent technology theft, including energy costs in the Delivery Price Indexation System, and establishing a new relief fund for damages.
Minister Han also pledged to promote recovery and growth for small business owners. She said, "To strengthen business safety nets, we will provide Business Stability Vouchers for operational activities and, in cooperation with the FSC and other related ministries, pursue tailored financial relief measures for small business owners." She added, "Through inter-ministerial collaboration, we will establish the Small Business Recovery Support System to provide one-stop support for business diagnosis, debt adjustment, and all stages from closure to restart."
To boost domestic demand, the Ministry will hold large-scale discount events in cooperation with other ministries. By integrating events such as the Korea Companion Festival and Korea Sale FESTA, the aim is to make these events national brands.
Minister Han also promised AI support for small business owners. She stated, "To strengthen the capabilities of small business owners, we will provide customized AI and digital technology solutions," and added, "We will focus on three areas: AI-powered business management support, the AI Civil Service Consultation Assistant, and consumer data analysis."
Meanwhile, Minister Han cited key achievements of the Ministry, including the provision of 1.5 trillion won in Burden Reduction Credit, raising the government’s maximum support ratio for Employment Insurance (EI) to 80% for those enrolled, operating a customs support program for exporting SMEs, and rationalizing the criteria for SME sales revenue.
stand@fnnews.com Seo Ji-yoon, Shin Ji-min Reporter