President Lee Jae Myung (left) on Jan. 30 speaks at a meeting on strategies for national job creation at Cheong Wa Dae in Seoul. (Cheong Wa Dae)

By Yoon Sojung

A new government initiative seeks to develop talent and innovate the startup ecosystem to create an environment where anyone can start a business.

The Ministry of Economy and Finance and the Ministry of SMEs and Startups on Jan. 30 jointly announced policy directions containing this content at a meeting on the startup era nationwide at Cheong Wa Dae in Seoul chaired by President Lee Jae Myung.

The meeting discussed a "K-shaped growth structure" that has intensified competition for jobs in which the fruits of economic growth are concentrated in large corporations, metropolitan areas and experienced staff. Participants thus agreed that the job market needs to shift from "finding" to "creating" and that the key method of achieving this is entrepreneurship.

Instead of just providing startup support, the goal is to build a system with the government as a partner that shares risk as well as create an environment in which anyone with an idea can start a business anywhere in the country.

For this, the "Startup Project for All," a national competition for job creation, will plant the seeds for creating businesses nationwide through public investment in civilian ideas. Focused on technology-based startups in the provinces, the plan is to transform the country's startup ecosystem by stimulating the spirit of challenge and finding 5,000 innovative entrepreneurs.

In technology startups, the planned designation of 10 startup cities will include four major hubs of innovative talent. Measures will also help set up startups with cutting-edge know-how in fields like the defense industry, climate technology, pharmaceuticals and biotech.

To stimulate business activity in the provinces, regional resources such as culture and tourism will go toward forming 50 commercial hub centers and 17 world-class commercial districts to help startups grow into mid-sized companies.

Another plan is to boost the integrated startup ecosystem through regulatory exemptions for startups within large special economic zones, provision of public data in high demand by businesses, a "rechallenge" fund worth KRW 11 trillion, and stimulation of open innovation between corporations and startups.

The project seeks to create the conditions where people "can freely take on challenges and fail" based guidance in stages, competitions and public funds for startup support. This will lead to a platform to foster entrepreneurial talent so that anyone with a good idea can start a business.

The plan is to find 5,000 innovative entrepreneurs across the country -- 4,000 in technology and 1,000 in the provinces -- and provide KRW 2 million in startup funding. An "entrepreneurship fever fund" of KRW 50 billion will also help promising startups selected through this project.

Startup competitions will have some 1,000 entrepreneurs compete in preliminary rounds in 17 cities and provinces, followed by more in five regions to select about 100 promising startups in the final stage. Competitors will receive up to KRW 20 million in commercial funding depending on stage and support for using artificial intelligence.

The "rechallenge ecosystem" will also collect stories so that business failures can lead to new success. A "certificate of challenging experience" will acknowledge Startup Project for All activities as career experience and a "certificate of experience in failure" will be used in startup applications.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun Cheol and Minister of SMEs and Startup Han Seongsook in a statement said, "We will accelerate the Startup Program for All," adding, "We will continue supporting the program to fuel its growth as a startup craze that the public can feel."

arete@korea.kr