Minister Lee So-young "Deep tech requires long-term patient capital... inter-ministerial review"

Review of permitting change in business purpose of start-up companies when providing policy funds

(Daejeon = Yonhap News) Reporter Koo Jeong-mo = Minister of SMEs and Startups Lee So-young announced on the 15th that he would expand patient capital for long-term investment in deep technology (deep tech) start-ups and review ways to improve the system so that start-ups that received policy funds can flexibly change their business purpose or direction.

Minister Lee said this when meeting with reporters after completing an on-site meeting for the 'Entrepreneurship City Creation Project' held at the Korea Advanced Institute of Science and Technology (KAIST) in Daejeon on this day.

Minister Lee explained that the need for long-term patient capital was commonly raised at two discussions on the local startup ecosystem held that day.

He said, “There was an opinion that deep tech startups require capital that can endure for a long time because it takes more than 12 to 13 years from research to commercialization and return of investment,” and added, “There was a suggestion that it would be good to have such an area in policy funds such as mother-of-funds funds.”

He continued, “I think this is a topic that we need to go back and think deeply about and study together between ministries.”

Minister Lee also expressed sympathy with the opinion that there is a need to increase flexibility so that start-ups that have received policy funding can change their business direction without being bound by the business plan originally submitted.

He pointed out, “Start-ups need to change direction and move flexibly while doing business, but there are cases where existing ideas, rather than changed ideas tied to the business plan, must be implemented due to policy funds.”

At the same time, he said, “Securing flexibility in terms of policy will help start-ups and match the policy goals that companies are trying to achieve through their activities,” and added, “I think this is a very reasonable point.”

Minister Lee added that he has noted these suggestions and will continue to review related policies in the future.

Meanwhile, Minister Lee also expressed his thoughts on undertaking a full-scale local site visit just three weeks after taking office.

He said, “I think we should not understand policies in print, but rather come to the field and understand them deeply,” and added, “Through this visit to the Chungcheong region, I felt that there are many local concerns and needs behind the policy of selecting a start-up city.”