TCI 2015 Local Government's Supportive Policies according to the Growth Stages of Startup Business in case of Seoul, Korea

Local Government's Supportive Policies ac-cording to the Growth Stages of Startup Busi-

ness in case of Seoul, Korea

Seowoo Chung, Sungkyunkwan University,

Korea

Parallel Session 2.1: Cluster Models Worldwide. Unique Features, Common Challenges

KOREA: THE BIGGEST STARTUP SUP-PORTING COUNTRY

• IMF: Financial Crisis

• Venture Boom

• Low Growth Economy

• Creative Economy

Start-up Supportive Oragnizations

Central Government Local Government

Seoul

Gyeonggi

$1,621

$266

$3,995

$2,004

SMBA 2015 Annual Budget: $7.9 Billion(Unit:Million, $1= ￦ 1,000)

Normal Accounting Local Development FinancingMedium Enterprises Financing Small Enterprises Financing

$1,500

$100

$350$113

$212

$600

SMBA Loan for Small and Medium-sized Enterprises Total $2.9 Billion (Unit:Million, $1= ￦ 1,000)

Initiative Startups Package Financing R&DDevelopment Revival Management Support

STARTUP GROWTH STAGES:View of Policies

Stage : Preparation (Start-up)Ⅰ

Stage : Action (Survival)Ⅱ

Stage : Development (Step-Up)Ⅲ

Stage : Revival (Re-Start)Ⅳ


Stage : Preparation (Start-up)Ⅰ• Financial Support• Provide Education, Office, Network, and Commercialization• Hierachy: Age, Gender, and Working population






Stage : Action (Survival)Ⅱ• Financial Support: Contribution, Subsidy, Loan, Guarantee• Specified Support: Prototyping, R&D, Marketing, Office, Coaching, etc.• Age: Less than 3, 5, or 7 years, Before the ‘Death-Valley’






Stage : Development (Step-Up)Ⅲ• In or After the ‘Death-Valley’• Coaching and Consulting, Financial: Loan, Guarantee• R&D Support: Finance, Coaching, Business Modeling, Commercializing






Stage : Revival (Re-Start)Ⅳ• Education: Case-Study, Business Renovation, Strategy Studying• Consulting, Boot-Camp, Financial Support• Founding Specialized Organizations

Local Government: Seoul

• Hierachy: Youth, Women, Senior• Competitive Exhibition• Hackathon• Challenge 1000 Project• SEOUL T-Stars 2015

• Culture/Media: DMC Center• Global Network• Media, Contents, Broadcast

• IoT, ICT, IT…

Limitation of Policies

• Field• IT/ICT

• Repetition• Double Benefit• Multiple Application

• Bias(Narrow-Based)• Money• Space

• Unbalanced• Early Growth-Stage Fo-

cused• Lack of Revival Support

Next Step: Cluster

Creative Korea

Seowoo ChungMaster Course , Sungkyunkwan University, School of Tel : +82 10 6300 7451Mail : [email protected]

Junyoung Oh Master Course , Sungkyunkwan UniversityTel : +82 10 3903 4379Mail : [email protected]

Economy & Finance

TCI 2015 Local Government's Supportive Policies according to the Growth Stages of Startup Business in case of Seoul, Korea