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  • Seoul Invests KRW 50 Billion into Startups for Overcoming the Crisis

  • Economy & Investment News SMG 114

    The impact on startups of the prolonged COVID-19 crisis is more evident than before. The Seoul Metropolitan Government will turn the current crisis into an opportunity through leading, positive support for Seoul-based startups.
    The city will invest a total budget of KRW 50 billion to offer support for labor costs of “10,000 technological professionals” of promising startups in the areas of biotechnology and untact businesses that are expected to show positive development in the future. The plan will support startups with high potential for growth to gain an advantage in the global competition.
    The main goal of the “support of labor costs for 10,000 technological professionals” is to support the technological and product development of startups so that there are no setbacks in the startups’ plans. At the same time, the plan is expected to heighten stability in the employment of technological professionals who are working at startups to lessen the impact the COVID-19 crisis has on the employment market.
    The “labor costs for technological professionals of startups” will provide KRW 1 million a month for five months to each beneficiary. The support is intended for businesses with more than five permanently employed individuals. Startups with more than fifteen individuals can apply for labor costs for up to seven people.
    The city will be prompt in carrying out the plan in order to offer timely support for startups that are suffering financially during the COVID-19 crisis. However, the city will commission accounting firms to regularly investigate the matter of unlawful supply and demand of startups after payment of labor costs to prevent such illegal activities and moral laxity of the companies. In the case that problems are discovered, the labor cost payment must be returned.
    The application period for the support fund is nineteen days, from September 7 (Mon.) to September 25 (Fri.) via the Seoul Startup Hub website (http://www.applyhub.co.kr/support). Only Seoul-based technological startups with more than five permanent employees as of June 1, 2020 and an accumulated sum of investments between KRW 100 million-50 billion after 2018 can apply for the support. Other matters and more information can be found on the website.