New startup initiative to lower bar of entry for entrepreneurship, Cheong Wa Dae says

President Lee Jae Myung (third from right) and participants look on at the national flag in a strategic meeting the president convened at Cheong Wa Dae on Friday. (Yonhap)
President Lee Jae Myung (third from right) and participants look on at the national flag in a strategic meeting the president convened at Cheong Wa Dae on Friday. (Yonhap)

President Lee Jae Myung on Friday rolled out plans to host a nationwide startup contest as part of efforts to lower the bar of entry for aspiring entrepreneurs and to raise awareness of entrepreneurship,

The contest will involve a total of a 100 billion won ($70 million) state spending in addition to private-sector venture funding, according to Cheong Wa Dae.

At the meeting he convened at the presidential complex on Friday, Lee said nurturing an environment through policy to encourage young people to start their own business could be a breakthrough for South Korea's economic bipolarization.

Lee also said young people are prone to failure as they take on challenges while being stymied by lack of opportunity. For those who face setbacks, there may be little chance of trying again, which "fuels growing social discontent."

In this vein, the administration will offer financial support for all contestants for this year's competition hosted by the country, in contrast with the previous administration's approach to provide support for a select few.

"South Korea has focused on nurturing seedlings," Lee said. "This time, we are supporting the creation of seeds."

Before the meeting, Cheong Wa Dae rolled out plans on Friday to host a contest for aspiring startups from March to December.

According to the senior presidential secretary for public relations and communication, Lee Kyu-youn, some 5,000 contestants who qualify for the competition will be granted 2 million won in seed money.

"We will make it easy for anyone to participate," the presidential aide said.

Among them, 1,000 contestants will be shortlisted to advance to the next stage, with those entrants to be granted an additional 20 million won.

They will be shortlisted again to 100 competitors, who will vie for the top spot and a 1 billion won prize. The 100 competitors' contest will be aired through a reality TV show, but the broadcaster has yet to be decided, according to Cheong Wa Dae.

Airing the startup contest is part of a new initiative to nurture entrepreneurship among young people, as the presidential aide said Friday that a 1 trillion won fund will be created for entrepreneurs who had experience failing, deregulation will be outlined for startup founders and 10 special cities for startups will be designated, among other measures.


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