The Seoul Metropolitan Government’s (SMG) support to 100 promising start-ups with its “growth acceleration package” through an investment of KRW 10 billion for their continuous growth against stagnation caused by COVID-19 is showing visible results. The SMG allowed the startups to use the fund in areas they need, such as commercialization, R&D, employment and new market discovery, and accelerated the support by adopting the method of “support first, settle later.”
Those startups attracted new investments of KRW 85.6 billion just in the second half of the last year, which was the most outstanding outcome. Even in the midst of investment uncertainty due to economic stagnation caused by the prolonged COVID-19 pandemic, investments increased by 73.3% compared to the first half of the year.
The average sale of the last year also increased by 51.5% compared to the previous year, amounting to about KRW 2.24 billion. Moreover, 350 new jobs were created as new employment picked up speed with the growth of companies. It was increased by about 20% compared to the time before the SMG’s support.
The SMG will not be stop with the growth acceleration package, but also engage in additional sales of 100 startups that have been supported. The SMG will make a publicity booklet that contains an introduction and stories behind the establishment of 100 start-ups to provide it to large companies and private venture investment institutions. In the booklet, the reasons for the recommendation of the investment by a private venture investment institution will also be included so that it can result in the investment and cooperation of private investors and large companies.