Ministry of SMEs and Startups

 MSS to Expand Support Programs for Technical Start-ups in 2018
- The ministry will raise the program budget by 14% Year on Year, from KRW 614.3 billion to KRW 699.3 billion -
 
According to the Ministry of SMEs and Startups (MSS, Minister: Jonghaak Hong), the ministry will raise the budget for technical start-up support programs in 2018. The MSS will commit KRW 699.3 billion, which is 13.8% more than what the ministry has spent last year (KRW 614.3 billion, supplementary budget not included). The budget increase reflects new programs such as the “Makerspace” development program (KRW 23.5 billion) and the expansion of the existing TIPS program (KRW 84 billion → KRW 106.2 billion).

This year, the MSS plans to take the following actions to support technical start-ups.

 ①The MSS will enhance its support for start-ups that contribute to the job market.
  - When evaluating applicants for start-up support programs, extra points will be given to companies that create high numbers of jobs and companies that receive Job Stabilization Funds.
  - The MSS will also require applicants to include action plans to promote social values, such as profit sharing between employees and employers, in their submitted business plans for consideration. The ministry will also track and manage jobs created by the companies included in the support programs, and use the findings to inform improvements in the support programs.


 ②The MSS will launch new programs, including the Makerspace Development Program (KRW 23.5 billion) and the Inhouse Start-up Program (KRW 10.0 billion).
 - To expand the foundation for manufacturing startups, new makerspaces will be developed across the country (in around 65 locations).
 - The ministry will also provide funds and services to promising in-house ventures in large corporations, middle-standing companies, and SMEs so that they can turn their ideas into actual businesses, and start spin-off companies.

 ③In addition, to ensure that start-ups with high chances of success are selected for the support programs, the MSS will implement all of its start-up programs as TIPS, where the government provides follow-up  support to start-ups that were selected and invested in by private investors.
  * Tech Incubator Program for Start-ups (TIPS) : Under the TIPS programs, the government provides incubation, mentoring, and technology development support to technical start-ups that were selected and invested in by accelerators and other TIPS companies (agencies).
  - The ministry also plans to require participating investors to make first investments, and arrange “pitching sessions” where applicant start-ups can pitch their ideas to investors.

 ④In keeping with the convergence of industries under the Fourth Industrial Revolution, the MSS will introduce programs designed to promote the creation of new industries.
  - Specifically, the ministry will help young and middle-aged entrepreneurs to work together to create “cross-generation start-up teams” (KRW 12.8 billion), and give preferential consideration to start-up teams  that combine people from diverse areas and backgrounds.