Policy framed as expansion of existing programs, with a stronger private-sector role in selection
South Korea’s Ministry of SMEs and Startups has pushed back against criticism surrounding its “Everyone’s Startup Project,” arguing that the initiative represents a structural upgrade of existing pre-startup support programs rather than a hastily introduced policy. The ministry said recent claims over the absence of budget allocation and evaluation guidelines reflect a misunderstanding of the program’s design and implementation framework.
The ministry described the initiative not as a standalone scheme but as a policy brand that integrates and expands existing support programs for prospective entrepreneurs. The shift is intended to address longstanding issues, including opaque selection processes and weak business survival rates. About 40% of firms supported under the pre-startup package have historically shut down within five years, raising concerns over policy effectiveness.
At the core of the reform is a redesign of how startups are selected and supported. The ministry plans to strengthen incubation, mentoring, and multi-stage competitive evaluation to move beyond broad-based funding toward capability-driven selection. The goal is to improve the quality of selected founders and, ultimately, raise startup survival rates.
The role of the private sector is being significantly expanded in the selection process. Around 100 incubation institutions will participate in selecting roughly 5,000 startup candidates, with each institution granted discretion in setting its own criteria. Selection standards and development plans will be disclosed via a dedicated platform, in a move aimed at improving both transparency and competition.
In response to criticism over unclear evaluation criteria, the ministry said it has already issued initial guidelines and will roll out more detailed standards, including evaluation methods, in phases. Regional startup auditions will also be conducted through private-sector-led evaluation committees, with the broader system to be refined over time.
The initiative is also positioned as part of a broader economic response. With downside risks to growth increasing amid geopolitical tensions in the Middle East, the government is seeking to stimulate new markets and expand youth employment through entrepreneurship. The strategy aims to strengthen the overall startup ecosystem and reinforce a virtuous cycle of growth.
Early market response suggests strong initial interest. The platform recorded more than 44,000 visits on its first day, rising to 250,000 within nine days, with over 4,000 applications submitted. This indicates both latent demand for startup opportunities and a growing willingness to enter the ecosystem.
The debate ultimately centers less on the existence of the program than on how effectively it is executed. Whether private-led selection and a staged competitive structure can deliver better startup outcomes remains to be seen. The success of the policy will depend less on its initial design than on how clearly standards are applied and how consistently the process is managed in practice.
Korean version available here.
