DAEJEON -- The Daejeon Creative Economy Innovation Center, jointly established by SK Group and the South Korean government in a bid to nurture local start-ups, is helping to accelerate the growth and expansion of promising venture firms.

Located at KAIST, one of Korea’s most prestigious universities focused on science and technology research and development, the center opened its doors in October 2014 aiming to help information and communications technology-focused start-ups commercialize their technology and expand their businesses globally.

The 10 start-ups participating in the center’s inaugural Dream Venture Star program Thursday presented their achievements to high officials, investors and reporters, following 10 months of one-on-one business mentorship and marketing support led by SK and the Ministry of Science, ICT and Future Planning.

“Our job was essentially to help venture firms develop solutions that match customers’ needs and turn those solutions into innovative technology which can create high profits,” said Cho Sung-ju, a KAIST professor and author of national best seller “Lean Startup Bible,” who served as a program mentor.

The 10 firms have managed to attract more than 3.3 billion won ($2.8 million) in investments and record around 1.8 billion won in sales, a significant improvement from just 320 million won in sales posted prior to partaking in the program, according to SK Group.

CMES -- the developer of a 3-D industrial scanner able to detect software defects more successfully than a 2-D device -- has secured a 100 million won deal to service its products to German-based automobile parts company Continental.

“Engineering start-ups typically lack starting capital and entrepreneurship skills,” said Lee Sung-ho, head of CMES. “SK provided us with seed money as well as helpful business mentorship related to technology management in general.”

The company is reportedly set to close a 1 billion won deal with a major Korean automobile manufacturer and to begin servicing its 3-D scanners to semiconductor manufacturer SK Hynix in the near future as well. 

TEGway, the developer of the world’s first wearable sensors able to generate power using body heat, won a Netexplo award in February, given by UNESCO to the world’s top 10 digital innovations every year. The venture firm has also signed a 1 billion won investment deal with Korea Science & Technology Holdings. 

VideoFactory, a cloud-based online video platform provider led by 25-year-old CEO Hwang Min-young, was selected to join the F50 Private Founder & Investment Network through a Silicon Valley program run by the Science Ministry’s Korea Innovation Center.

“With support from the F50 network, we have been taking part in closed meetings with high-profile U.S. investors such as Google,” Hwang said, adding that Coolidge Corner Investment has agreed to invest 450 million won in investment in the video tech start-up.

After the entrepreneurship program concludes in August, the 10 start-ups are set to continue cooperating with SK Group. For instance, SK Telecom plans to join hands with fintech start-up C&TECH to commercialize the venture firm’s securities management program. 

The telecom giant is also planning to apply EXSEN’s advanced gas sensor modules to its portable air-monitoring device Air Cube while SK Hynix is looking to install the venture firm’s modules in its Cheongju plant.

“Together with SK Group, the Daejeon center will continue to help turn ideas into new business and support the global expansion of Korea’s promising venture companies,” said Lim Jong-tae, director of the Daejeon Creative Economy Innovation Center.

By Sohn Ji-young (jys@heraldcorp.com)