TIPS Program

The Tech Incubator Program for Startup (TIPS) is a cornerstone of South Korea's startup ecosystem, operating as a unique government-backed initiative designed to foster technologically innovative startups. Launched in 2013 by the Ministry of SMEs and Startups (MSS) and managed by the Korea Institute of Startup & Entrepreneurship Development (KISED), TIPS distinguishes itself by being "private-sector-led." This means that promising startups are first identified and invested in by accredited private entities, known as "Operating Companies," which include angel investors, venture capital firms, and accelerators. This private validation is a prerequisite for a startup to be considered for the program, ensuring a market-driven selection process.

Upon selection, the TIPS program provides substantial government matching funds and support. The core mechanism involves an Operating Company investing a minimum of 100 million Korean Won (approximately $73,000 USD) into a startup. In return, the government provides R&D grants of up to 500 million Korean Won (approximately $365,000 USD). Beyond R&D, startups can also receive additional government funds, including up to 100 million Korean Won for commercialization and another 100 million Korean Won for global marketing initiatives, bringing the total potential government support to 700 million Korean Won (approximately $511,000 USD). This combined public-private funding model aims to de-risk early-stage deep tech ventures and accelerate their growth.

Since its inception, TIPS has played a pivotal role in nurturing high-potential Korean startups, particularly those focused on advanced technologies and innovation. The program has supported over 1,000 startups, many of which have gone on to secure significant follow-on investments from both domestic and international investors. Its emphasis on private sector leadership ensures that the selected startups possess strong market potential and are aligned with investor interests, while the government's substantial grants provide the necessary capital for intensive R&D and market entry. TIPS is widely recognized for its contribution to building a robust and globally competitive startup landscape in South Korea.