Reported by Jae-chang Seo / Mar 03, 2021
Support for a total of 143 companies in 2021, including 55 companies supported for the second year.
The Ministry of Science and ICT (hereinafter referred to as the Ministry of Science and ICT) announced that 88 new software companies participating in the software high growth club project were selected through a month-long public offering.
The ▲ High Growth Club project will further expand its business size from 13.6 million dollars last year to 17 million dollars to support a total of 143 companies.
The project is to discover high-growth companies and prospective high-growth companies with high growth potential (less than seven years of start-up) and support them for up to two years to continue to grow through autonomous task budget support and expert advice.
The conditions for high-growth companies referred to here should be those with an average annual employment or sales growth rate of 20% or more over three years.
Last year, 114 companies that received support from the project achieved results such as sales of 220 million dollars, investment attraction of 63 million dollars, new job creation of 1704 people, and KOSDAQ listing through their own innovation and customized support.
This year, the project will be further expanded from 13.6 million dollars last year to 17 million dollars to support a total of 143 companies. Among the 61 companies selected in 2020, 55 companies with excellent performance and 88 newly selected companies this year are eligible for support.
A total of 373 companies applied for the announcement of recruitment of new companies from December 18, 2020 to January 18, 2021, with a high competition rate of 5.1:1 for high-growth companies and 4.1:1 for preliminary high-growth companies.
Private experts working in start-up companies fostering institutions and investment companies participated in the screening to select excellent companies, and companies with high growth potential and innovation were selected through written and presentation evaluations.
Among the 88 types selected this time, AI and big data companies accounted for the largest portion with 43 (49%), followed by 9 content convergence (10%), 9 cloud (10%), 8 IoT (9%), 5 security (6%), and 2 virtual and augmented reality (2%).
If selected as a software high-growth club, high-growth companies will support companies to implement self-designed tasks within 250,000 dollars a year and prospective high-growth companies within 84,000 dollars a year, as well as expert advice, exchanges and investment attraction for up to two years.
In addition, eight selected companies that need innovative technology development will be selected later to provide additional technology development costs ranging from 84,000 dollars to 250,000 dollars per year.
Software is the basis of new technologies such as artificial intelligence and cloud, and software companies are also playing an important role in the Digital New Deal, one of the government's core policies, said Jung-sam Kim, a software policy officer at the Ministry of Science and ICT.
"We expect our software companies to grow into leading companies in the global software market and contribute to creating new jobs through their own innovation efforts and government support", he said.