Home > For Entrepreneurs > $1.8 Billion Invested in Korean Startups Thanks to “Creative Economy” The South Korean Government Implements Policy Favoring Innovation and Entrepreneurship

$1.8 Billion Invested in Korean Startups Thanks to “Creative Economy” The South Korean Government Implements Policy Favoring Innovation and Entrepreneurship

mZ94zcI-6Fw韩国实施“创造经济”,初创公司获18亿美元投资 More than 30,000 venture firms were registered in South Korea in 2015, with ₩2.1 trillion ($1.8 billion) invested – these record numbers are not a mere coincidence, but a result of “Creative Economy” – a government policy implemented for the past four years and aiming to foster venture and startups at the Republic of Korea. Hong Nam-Ki, Vice-Minister for Creative Economic Policy, said in a recent interview to BusinessKorea that “The OECD recently praised South Korea as one of the most innovative countries in the world. Last year, its CCEI model was exported to Saudi Arabia, Brazil, Honduras and many more…”

The CCEI’s – Centers for Creative Economy and Innovation – were established throughout South Korea, providing numerous funding models and financial incentives for entrepreneurs willing to start their own business. Among these incentives is government support to failing start-ups, financial guarantees from a state-owned credit bank and assistance in credit recovery. Among the funding models provided by the Korean government , crowdfunding is available starting this year, and allowing the general public to participate in funding.

This favorable government policy has done more than just pushing Koreans into entrepreneurship – according to Lim Jung-Min, head of the Google campus in Seoul (opened in May 2015), entrepreneurs from more than 80 countries are seeking new business opportunities in South Korea, and venture capital firms were soon to follow. In addition, Google plans to establish a mentorship program for Korean start-ups – perhaps as part of a company-wide policy allowing employees to develop their own ventures within a Google-owned incubator.

By implementing these government policies, South Korea follows the steps made by the government of Singapore in its Smart Nation program. CIV Senior Research Fellow, Robyn Klingler-Vidra, has elaborated on the Singaporean model in an earlier guest post on our website. For additional information on government policies favoring innovation, please read the policy strand posts and Issue 1 of Coller Venture Review, available to our members and focused on venture policy.

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