FOR IMMEDIATE RELEASE                      
April 8, 2025                                     
                                           
Ministry of SMEs and Startups Unveils 2025 Scale-Up TIPS (General Type) Support Plan

SEJONG – The Ministry of SMEs and Startups (MSS) announced on Monday, April 7, the launch of the 2025 Scale-Up TIPS (General Type) Support Plan, aimed at assisting technology-intensive and high-potential SMEs and startups in scaling their innovations and business growth.

Key highlights of the support plan include the following.

➊ Track Segmentation (General Type/Global)

Starting in 2025, a new Global Track will be introduced, offering 24 slots with R&D funding of up to KRW 1.5 billion over three years. This track is designed to support companies targeting overseas expansion. Given the enhanced level of support, eligibility requirements will be more rigorous than those of the General Track-for example, companies may be required to secure a certain level of foreign investment. Further details will be announced separately.

Meanwhile, 102 projects will be selected under the General Track, focusing on promising SMEs and startups developing strategic technologies across Korea’s 10 super gap industries, 12 national strategic technology areas, and the carbon neutrality sector.

➋ Introduction of Specialized Support System for Strategic Fields

To bolster R&D in high-priority fields like artificial intelligence (AI) and biotechnology, the program will introduce a specialized support system. In 2025, top-performing consortia with proven capabilities in these areas will be designated as specialized operators. Future operator selections will prioritize specialization and expertise in these strategic domains.

Existing operating consortiums will be encouraged to adapt in response to the evolving support needs of companies. To enhance their capabilities and effectiveness, changes to consortium composition, such as additions or modifications, will be permitted. Furthermore, the evaluation and incentive system for operators will be upgraded to place greater emphasis on measurable achievements in scale-up support.

In addition, operators will be encouraged to appoint dedicated coordinators to assist companies with their R&D activities. These coordinators will help ensure that participating companies receive the necessary support throughout their Scale-Up TIPS projects. Beyond their project manager (PM) responsibilities, they will also play a key role in fostering collaboration among consortium members.

➌ Strengthening the Link Between R&D and Equity Investment

Previously, companies had the option to pursue either R&D support or equity investment after securing initial funding from operators. Beginning in 2025, this connection will be reinforced to enhance the overall effectiveness of support. Equity investments will now be more closely aligned with a company’s growth trajectory following R&D, helping to address the significant funding demands that typically arise in the post-R&D phase.

< Scale-Up TIPS (General Type): Support Framework>
 

Category	R&D	Equity Investment
Eligibility	Scale-Up TIPS Operators Pre-investment of KRW 1 billion or more	Completion of Scale-Up TIPS R&D milestones and additional investment of KRW 500 million or more from operators
Support Size	102 new projects	To be determined (Subject to change based on fulfilment of conditions)
Funding Amount	Up to KRW 1.2 billion (3 years)	Matching investment within 1x, up to KRW 2 billion
Application	Ongoing
Evaluation	April, May, July, September, November

Over the past three years (2022–2024), more than KRW 1.5 trillion in combined public and private funding has been invested in 379 companies through Scale-Up TIPS. Of this, approximately KRW 583.3 billion came from private operators as prior investment. Notably, 111 companies, around 30% of those selected, secured follow-up investments totaling KRW 556.7 billion from venture capital and other sources.
A total of nine companies supported by Scale-Up TIPS have successfully completed initial public offerings (IPOs), underscoring the program’s impact in mobilizing private investment and driving the growth of innovative businesses.

PARK Yong-soon, Director General for Technology Innovation Policy, stated, “We have enhanced the system by linking investment with performance to deliver more tangible outcomes.” He added, “Through innovative R&D support models like Scale-Up TIPS, we will strengthen the foundation for SMEs and startups to pursue technological development in strategic fields, enabling them to become key drivers of national economic growth.”

Scale-Up TIPS
Scale-Up TIPS (Tech Incubator Program for Startup) is a government initiative designed to support SMEs and startups in their full-scale growth phase. When a company secures an investment of KRW 1 billion or more from designated operators, it becomes eligible for government-backed R&D support of up to KRW 1.2 billion over three years. Companies that demonstrate strong performance, such as obtaining follow-up investments, may also receive up to KRW 2 billion in funding through equity investments from the fund of funds.

###