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Feb. 21, 2025                                     
                                                
MSS Announces Measures to Expand AI Utilization by Nurturing AI Startups

SEJONG – The Ministry of SMEs and Startups (MSS) announced its Measures for Expanding AI Utilization through Nurturing AI Startups at the 3rd National AI Committee meeting, chaired by Acting President and Deputy Prime Minister CHOI Sang-mok, on February 20.

Recently, major economies, including the United States, France, and the EU, have announced large-scale private investments worth hundreds of trillions of Korean won in the artificial intelligence (AI) sector. Meanwhile, Chinese startup DeepSeek has developed AI models rivaling those of U.S. tech giants through innovations in software and algorithms, making a significant market impact. In response, MSS has introduced measures to foster AI startups and expand AI adoption in small and medium enterprises (SMEs).

MSS aims to nurture AI startups that develop and provide AI services and solutions, strengthening global competitiveness in service and utilization. It also seeks to increase AI adoption among SMEs from 28% in 2024 to 50% by 2027 and cultivate five global AI unicorns.

First, the MSS will support the strengthening of capabilities of AI startups by sector. It will promote the development of AI models through collaboration among companies, fostering AI service supply startups in industries such as manufacturing and finance, and creating and disseminating new business models. In addition, it plans to establish a ‘data generation lab’ capable of generating and synthesizing data, designate 100 specialized manufacturing AI companies, and provide concentrated support in terms of funding, manpower, and market expansion, including loans and guarantees of up to KRW 10 billion per company.

Second, MSS will create demand markets for AI services developed by startups through open innovation. It will leverage public-private cooperative innovation projects to facilitate collaboration between large companies and startups in developing AI solutions for industry-specific challenges. Additionally, MSS plans to expand successful cases from the Ministry of Trade, Industry, and Energy’s autonomous manufacturing projects through smart factory initiatives. To further drive AI adoption, it will provide education and consulting services to enhance AI awareness and understanding among SME management and employees.

Third, the MSS will strengthen support for AI startups. Of the total new liquidity supply for SMEs in 2025, amounting to KRW 9.8 trillion, 60% (KRW 5.7 trillion) will be concentrated in innovative growth sectors such as AI and semiconductors. In addition, by 2027, it plans to establish and manage an AI fund worth approximately KRW 3 trillion, combining public and private funds, to significantly increase financial support for AI startups.

Furthermore, MSS will allocate over 50% of the KRW 330.1 billion new R&D budget for SMEs to strategic technology sectors like AI. It will prioritize high-risk, high-reward AI projects, offering up to KRW 10 billion in combined funding from R&D grants and private investments. Additionally, MSS will support joint research with global institutions such as MIT and introduce an AI-focused accelerator system to facilitate international expansion.

Minister Oh Youngju stated, “We are in an era where everyday products like TVs, washing machines, and watches are equipped with AI. In this landscape, MSS, startups, and SMEs must act with urgency and prepare accordingly.” She emphasized, “We will turn the impact of DeepSeek into an opportunity for growth by focusing on specialized AI service sectors where startups and SMEs can excel, fostering national AI leaders, and strengthening AI technology and market presence.”