South Korea Pivots to Deep Tech for National Startup Era, Aims for Global Leadership

In a significant strategic shift, South Korea has formally declared a "National Startup Era," with President Lee Jae Myung outlining ambitious plans to position domestic startups as a pivotal engine for future national growth. The initiative, revealed at a "National Startup Era Strategy Meeting" held at the Blue House on January 30, seeks to move beyond the limitations of a large conglomerate-centered industrial structure and adapt to the challenges posed by emerging technologies like AI, which are expected to lead to job displacement. The government’s new policy emphasizes not just the quantitative expansion of entrepreneurship but a qualitative leap towards fostering "game changers" capable of leading global markets, with a strong focus on deep tech innovation Korea JoongAng Daily.

"Startup for All" Initiative Launches Nationwide

Central to this new national strategy is the "Startup for All" project. This ambitious program aims to identify and support 5,000 aspiring founders. Of these, 4,000 will be in critical technology fields, while 1,000 will focus on local industries. Each selected founder is slated to receive 2 million won (approximately $1,380) in seed funding. Complementing this initial support, the government also plans to launch a 50 billion won "Startup Boom Fund" specifically designed to concentrate investment in these early-stage entrepreneurs chosen through the program, providing crucial capital during their formative stages.

Beyond Quantitative Expansion to Breakthrough Innovations

While the "Startup for All" project provides a broad foundation, the ultimate objective extends beyond simply increasing the number of startups. The government recognizes that for entrepreneurship to genuinely contribute to national competitiveness, the focus must shift to nurturing companies capable of breakthrough innovations. The emphasis is on deep tech-based startups that can commercialize advanced technologies often overlooked or not fully developed within universities and research institutions. This strategic direction draws parallels with Israel's transformation into a "startup nation," which was not primarily driven by the sheer volume of founders, but by a concentrated national effort in advanced fields such as AI, quantum technology, and biotechnology, coupled with robust systems for market commercialization Korea JoongAng Daily.

Navigating the "Valley of Death" with Sustained Support

A critical challenge for nascent deep tech companies is crossing the "valley of death" – the difficult period between initial R&D and successful market entry. To address this, the Korean government intends to facilitate the matching of teams possessing distinctive technologies with substantial research and development funding and highly customized technical support. This comprehensive approach is deemed essential for enabling these startups to mature. Key requirements for success include sustained capital, the implementation of comprehensive evaluation standards, and close coordination between public research institutions and private investment sectors.

Learning from Past Initiatives and Aiming for Unicorns

The current state-led startup initiatives are not without precedent in South Korea. The Park Geun-hye administration, for example, established "Creative Economy Innovation Centers" across the nation. However, those earlier efforts ultimately fell short of producing sustained, impactful results. The current declaration of a national startup era seeks to learn from these past experiences. Government support has historically opened doors to entrepreneurship, but the present need is for a robust market system that enables these emerging companies to scale and evolve into "unicorns"—privately held startup companies valued over $1 billion. The aspiration is for this new declaration to transcend mere slogans and become a genuine turning point, transforming Korea into a leading global hub for deep tech innovation Korea JoongAng Daily.

Toward a Global Deep Tech Hub

President Lee Jae Myung's vision for a National Startup Era underscores a strategic intent to reorient South Korea’s economic foundations. By prioritizing deep tech and fostering an ecosystem that supports innovative commercialization from initial seed funding through to growth, the government aims to cultivate a new generation of market leaders. This shift is designed to ensure that Korean startups not only contribute to domestic growth but also gain significant traction in competitive global markets, ultimately cementing the nation's position as a powerhouse in advanced technological innovation.