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2015/SMEMM/017 Agenda Item: 3.3.4

Realizing an Innovative Business Ecosystem through the Revitalization of Technology-Based

Startups

Purpose: Information Submitted by: Korea

22nd Small and Medium Enterprises Ministerial Meeting

Iloilo, Philippines25 September 2015

 

2/10/2015

1

Realizing an Innovative Business Ecosystem through the Revitalization of Technology-Based Startups

25 September, 2015

JUNG WHA HAN, Administrator Small and Medium Business Administration, Korea (ROK)

Technology-Based Startups and an Innovative Business Ecosystem

The Policy Direction in 2015

Major Policy Agenda

Small and Medium Business Administration, Korea (ROK)

2/10/2015

2

Fast follower / Geared towards largeenterprise

Focused on quantity and hardware

Growth as the highest priority / Failure asthe path towards being weeded out

First mover / Geared towards win-win Cooperation between large LE and SME

Focused on quality and software

Balance between growth and welfare /Failure as the foundation of innovation

IndustrialEconomy

CreativeEconomy

Creative economy proposes to resolve social polarization and dual economic structure through

win-win cooperation between large enterprises and SMEs

1

Technology-Based Startups and an Innovative Business Ecosystem

ManagerialSociety

EntrepreneurialSociety

SMEs

Sta

rtup

Necessity driven

Opportunity driven

Venture startupfrenzy in

the late 1990s

GDP

USD

Support fortechnology

commercialization

Marketexpansion

Reduction ofFailure costs

Fair trade /Win-win

Cooperation

Investmentexpansion

Fortification ofentrepreneurial

capabilities

2

Technology-Based Startups and an Innovative Business Ecosystem

2/10/2015

3

01 02

The Policy Direction in 2015

Cultivation of technology-basedentrepreneurs

Facilitation of the market entry ofcreative and innovative products

Creation of startup valley Fortification of collaboration withthe Creative Economy and Innovation CenterExpansion of TIPS

Revitalization of InnovativeStartups and Environment Improvement

Promotion of the Demand-pull Startups and Growth of SMEs

Startup Leap Growth Global Expansion

3

Major Policy Agenda

Promoting technology-based startup tailored for the characteristics of entrepreneurs

Youth,college

students

Professors,researchers

Retired technology

experts ProfessionalFreelancer

Foreign Student

Platform for technology-based startups(searching new ideas, crafting test products,

conducting market test, etc.)

Focused cultivation of venture and startupclusters

Guro Digital Valley

· To accommodate 10,000IT and venture companies

· Smart venture startupschool, etc.

Pangyo Creative Economy Valley

· To accommodate global venturecompanies

· To create the Pangyo Valley Fund

High-tech startup campus· Bring together startup teams and

investment companies

TIPS Startup Town

· Supporting the advance into the

global market

To establish Korean and global cooperative networks

· (Private) D.Camp, Maru180, etc.

· (Public) Korea Venture Investment Corp., etc.

4

Teheran Valley

Revitalization of Innovative Startups and Environment Improvement

2/10/2015

4

Major Policy Agenda

TIPS, the private and public joint comprehensive support system

· The private sector selects and invests in prospective startup teams and provides mentoring

· The government sector provides focused follow-up support for R&D and marketing

Private(large corporations, VCs,

and angel investors

Government

First phase Startup financing

Second phase Technology development

Third phase Overseas marketing

Professorsand

researchersCorporate

techmanpower

Youngtech

manpower

Screening

Investmentand mentoring

Follow-up

5

Revitalization of Innovative Startups and Environment Improvement

Major Policy Agenda

6

TV

Government-designated stores

MobileInternetDistribution and sales

Technology transactionsSustaining investment

Offline

Departmentstores

Warehousesupermarkets

Conveniencestores

Online

Onlineshopping malls

Social commercewebsites

Mobile apps

On air

Online

Offline

Public home shopping channels focused on creative products• Creation and operation of a home shopping normalization task force team

Establish a creative product DB /Showcase products on online shopping malls• Online shopping malls, social commerce websites, etc.

Korean version of Tokyu Hands opened and operated (showcasing 10,000 products)• Utilizing 14 government-designated stores, including Happy Department Store

Japan’sTokyu Hands

• Sales in 2013 reaching 82.8 billion yen• Visited by over two million every year

Distribution platform centered on TV home shopping channels

Promotion of the Demand-pull Startups and Growth of SMEs

2/10/2015

5

Major Policy Agenda

7

Completion on establishment of infrastructure promoting a creative economy, focused on 17 centers

Culture

Aviation

Electronic infor-mation & bio

Solar energyand ICT

ICT

ICT

Carbon fiber

Automobile

IT service

IT Service

IT Service

Electronics

Electronics

Shipbuilding and machinery

Distributionand tourism

Machinery maintenance

Constructionand energy

Startup incubation

Test product manufacturing

Public home Shopping channels

Overseas markets

TIPS Startupfund

Investment presentatio

n

Startup financing

Promotion of the Demand-pull Startups and Growth of SMEs

Thank you

JUNG WHA HAN, AdministratorSmall and Medium Business Administration, Korea(ROK)