FOR IMMEDIATE RELEASE                       
Feb. 27, 2025                                
                                            
Ministry of SMEs and Startups Hosts ‘AI Super Gap Challenge Kick-off Day’

SEJONG – The Ministry of SMEs and Startups (MSS) hosted the 'AI Super Gap Challenge Kick-off Day' on February 26. The AI Super Gap Challenge is an initiative designed to promote the commercialization of AI technology and support startups in securing sales channels through demand-driven collaborations with global corporations like LG Electronics and Qualcomm, alongside promising domestic AI startups.

The rise of DeepSeek, a Chinese company that recently launched a low-cost, high-performance LLM model, has heightened global competition for AI technology dominance, including the United States and China, while accelerating AI adoption across diverse industries.

As a result, the need for developing demand-driven, specialized AI technologies, such as ‘On-device AI’ and ‘Vertical AI’, has become increasingly critical. These technologies are designed for specific devices or industries, like manufacturing and biotechnology. Therefore, policy support in this area is essential.

1) On-Device AI: AI that leverages semiconductors to rapidly collect and process data within specific smart devices, eliminating the need for reliance on a central cloud server.
2) Vertical AI: AI systems tailored to specific industries or products, offering highly specialized solutions that deliver dependable results within those contexts.

In response to these global market trends, MSS unveiled the ‘Super Gap AI Startup Level-Up Strategy’ in July 2024, aimed at nurturing promising AI startups across five high-growth sectors, including sLLM, AI fabless, and manufacturing AI, by linking them with demand to help them grow into global unicorns.

A central component of this strategy is the expansion of the ‘AI Super Gap Challenge,’ designed to accelerate growth and generate tangible outcomes, such as securing sales channels, by aligning the demands of global corporations with the innovative capabilities of AI startups.

In addition to LG Electronics, which co-hosted the event in 2024, Qualcomm, a global corporation, has joined as a new partner for 2025. As a result of ongoing discussions, the scope of collaboration, programs, and scale for this challenge have been significantly expanded.

This year’s challenge includes two programs: ‘On-Device AI,’ in partnership with LG Electronics and Intel, and ‘Vertical AI,’ in collaboration with Qualcomm and its Korean partners, which include four promising deep-tech startups. The main details are as follows:

On-Device AI Program

Building on LG Electronics’ laptops featured in 2024, this year’s collaboration will be expanded to encompass six additional areas, including smart TVs, digital signage, and home appliances. These sectors are anticipated to experience significant growth in the global market by integrating innovative AI technologies from startups.

< Status of Collaborative Devices in 2025 >
 

Device  (LG Electronics)		➊ Smart TV  (OLED TV, QNED TV)		➋ Lifestyle Screen		➌ Earphones, Speakers, etc. (Bluetooth earphones, soundbars, etc.)
		➍ IT Devices (Laptop, monitor, projector)		➎ Digital Signage (Transparent OLED, OLED, LED)		➏ Smart Home Appliances (Household Appliances) (Refrigerator, washing machine, etc.)

This year, support will be extended to a total of 15 companies, selected through a joint evaluation with LG Electronics. Unlike in 2024, the selected startups will receive increased funding of up to KRW 100 million to support AI model development, Proof of Concept (PoC), and other initiatives.

In addition to financial backing, LG Electronics will assist with business unit matching, PoC planning, and technology development, while Intel will provide development toolkits and offer training on utilizing AI chips. Startups that demonstrate exceptional results from these collaborations will have the opportunity to secure sales, as their AI technologies will be integrated into LG Electronics' devices.

Vertical AI Program

This newly established program will support collaboration with deep tech small and venture companies in four areas - autonomous driving, drones, and others - where demand has been confirmed through market validation by the global corporation Qualcomm.

< Status of Collaborative Areas and Companies in 2025 >
 

➊ Autonomous Driving Robotics  (Collaborating Company: INTEGRIT)		➋ AI Edge Box Based on Vehicle AI Cameras (Collaborating Company: D-TEG)
❸ Inspection Drone  (Collaborating Company: ARGOSDYNE)		❹ Industrial Handheld Devices  (Collaborating Company: Bluebird)

Support will be extended to a total of four companies, selected through a joint evaluation with Qualcomm. The selected startups will receive funding of up to KRW 100 million to support collaboration in Proof of Concept (PoC) development and other initiatives.

Qualcomm will provide technical support, including access to AI semiconductors, facilitate the use of the Qualcomm AI Hub, and assist with one-to-one matching of demand companies. Additionally, Qualcomm will support the utilization of necessary equipment. For startups that achieve outstanding results, Qualcomm plans to connect them with global partners, help discover new clients, and support their efforts to expand internationally and secure sales channels.

Startups wishing to participate in each program can apply through the K-Startup portal (www.k-startup.go.kr) from February 26 (Wednesday) to March 18 (Tuesday).

The ‘Kick-off Day’ commenced with opening remarks from Oh Youngju, Minister of SMEs and Startups; Park Hyung-se, Head of LG Electronics’ Media Solution Division; and Kwon Oh-hyung, Senior Vice President and Head of Asia-Pacific at Qualcomm. This was followed by congratulatory speeches from Bae Tae-won, President of Intel Korea, and Lee Se-young, President of the Generative AI Startup Association. The event included presentations on global AI technology trends, announcements of challenge programs by participating organizations, and project and schedule updates from the Korea Institute of Startup & Entrepreneurship Development, before concluding with a formal ceremony.

Prior to the event, Minister Oh Youngju hosted a luncheon meeting with representatives from six AI startups that participated in the ‘On-Device AI Challenge’ in 2024. During the meeting, participants shared their achievements and discussed potential improvements to the government’s support policies for AI startups.

Building on the success of this challenge, MSS plans to sequentially roll out challenges across various deep-tech sectors, including the ‘Fabless Challenge,’ where fabless startups will collaborate with all domestic foundries; the ‘Climate Tech Challenge,’ which will support public procurement using the infrastructure of public institutions such as Korea Electric Power Corporation (KEPCO); and the ‘Mid-sized Company-Startup Challenge,’ aimed at discovering new growth engines through collaboration with mid-sized enterprises. MSS will continue to implement relevant policies to support deep-tech startups from emerging industries, helping them achieve tangible results through strategic collaborations.

Park Hyung-se, President of LG Electronics’ Media Solution Division, stated, "We plan to expand the areas of collaboration to include all display products, home appliances, and smart home solutions, focusing on discovering new business opportunities and driving the commercialization of AI startups." He added, "We are committed to ensuring that the AI technologies of startups that demonstrate exceptional results from the challenge collaboration can be rapidly integrated into the relevant devices."

Kwon Oh-hyung, Senior Vice President and Head of Asia-Pacific at Qualcomm, remarked, "As a leader in On-Device AI, Qualcomm continues to showcase advanced on-device AI technologies and product portfolios, delivering differentiated performance across multiple industries." He further stated, "With this Vertical AI Super Gap Challenge as a starting point, we plan to expand our collaboration with domestic ISV partners to further support promising startups in Korea."

Minister OH Youngju emphasized, "As the pace of AI technology accelerates in the global market, it has become more crucial than ever for AI startups to quickly commercialize demand-based, specialized AI technologies by applying them to specific devices and industries." She added, "We will fully support relevant policies to ensure that promising AI startups can commercialize their innovative AI technologies in collaboration with global corporations through this challenge, thus accelerating their global expansion."