The city of Gwangju announced on the 31st that it will enhance customized support to ensure the sustainable growth of local youth startup companies with promising technology.
Starting in April, the city will implement the “Customized Discovery and Nurturing Business for Prospective Startups” to provide a variety of support initiatives, ranging from facility support to funding, for local youth startup companies.
This program consists of four main support components: △ office space and residential facility support △ technology enhancement fund support △ customized consulting and investment attraction support △ special guarantee support.
The target applicants are “local youth early-stage startups” that have been established within the last three years and have CEOs who are 39 years old or younger. Applications can be submitted according to announcements on the Gwangju city’s website under “Notice/Public Announcement” and the Gwangju Technopark site under “Support Business Announcements.”
To alleviate the burden of rent, the city is offering office space in “IFLEX Gwangju” for youth companies struggling to find office space. A total of 21 companies will be accommodated, and after an initial usage period of six months, companies can extend their stay for up to three years based on semi-annual evaluations.
For residential facilities, space is provided for seven youth companies at an affordable rent of 180,000 won per month for an area of 20 pyeong. It can initially be used for two years and can be extended for another two years based on evaluations.
To enhance the technological competitiveness of youth companies, the program also offers technology enhancement funding. Eight companies will be selected through a review process and can receive up to 30 million won per company. Previously, only companies housed within IFLEX received this support, but it has now been expanded to include all local youth early-stage startups in Gwangju. Selected companies can receive tailored evaluations from experts such as startup planners (AC) and venture capital firms (VC) regarding their development strategies.
Customized consulting and investment attraction support are also being significantly strengthened. While last year, 21 youth companies were supported, this year, support will expand to more than 30 companies.
Furthermore, additional expert resources will be secured to provide a variety of consultations for youth companies. Through one-on-one consultations with specialists, youth companies can concretize their growth strategies in areas such as investment attraction and linking government support projects. Companies evaluated as outstanding can also receive direct investment from AC.
To aid in solving financial challenges of youth companies, a special guarantee for youth startups will also be supported. This new special guarantee is available for youth startup companies that have been operational for less than seven years and have business sites in the Gwangju area. They can acquire a loan of up to 50 million won per company from banks partnered with the city at affordable interest rates.
Additionally, the city plans to promote a “Startup Idea Contest” allowing young entrepreneurs to showcase their technology startup ideas and have their commercialization potential evaluated. Youth participants, gathered from across the country, will present business plans aimed at solving urban issues in Gwangju and receive evaluations from experts. Supports will be linked to enable award winners to establish startups in Gwangju, with applications and submissions scheduled for the second half of the year.
Ju Jae-hee, head of the city’s Economic and Startup Bureau, stated, “We have improved the support projects after several discussions with youth startups,” adding, “We will not spare practical support to ensure youth companies struggling in the early stages of startup can grow steadily.”