South Korea to increase investment in startups in 2021

The Ministry of SMEs and Startups said the budget to support startups has been raised to 1.5 trillion won (US$1.4 billion) this year.
By: | January 11, 2021
Topics: Compensation and Benefits | News | Restructuring | South Korea

The amount allocated was increased by 66.2 billion won (US$60.6 million) year-on-year, making it the largest amount set aside for startups ever. 

The budget for startups has been increasing as it is a growth sector that has been creating jobs and supporting businesses which specialise in contactless technology, said the ministry.  

A total of 32 ministries and municipal governments will carry out 194 projects with the funds. About 1.4 trillion won (US$1.3 billion) will go to 90 projects undertaken by 15 ministries, with the Startups Ministry being in charge of 81% of the budget to support 40 projects. 

Seventeen municipal governments in the country will spend 81.1 billion won (US$74.2 million) to support 104 projects, with the Seoul Metropolitan Government getting the lion’s share of 23.7 billion won (US$21.7 million) to spend on 14 projects.  

READ: South Korea reaffirms pledge to create 150,000 new jobs in 2021

In 2021, eight new projects have been added. These include the Ministry of SMEs and Startups’ global company cooperation project and the Ministry of Science and ICT’s collaborative technology development for future market optimisation. 

Specifically, 141.3 billion won (US$129.3 million) will be set aside for 29 projects targeted to support young startup founders under the age of 40, according to The Korea Herald.