South Korea is moving to strengthen one of its most successful startup support frameworks, the TIPS (Tech Incubator Program for Startup Korea). By adding 30 new operating firms in the 2025 TIPS program, the Ministry of SMEs and Startups is signaling that public-private partnerships remain central to scaling technology startups. This move underscores how Korea is adapting its startup policy to regional gaps while positioning itself as a model for other ecosystems.

Korea Expands 2025 TIPS Program with 30 New Operating Firms

On September 15, 2025, the Ministry of SMEs and Startups (MSS) announced the recruitment of about 30 new TIPS operators. Applications are open until September 30 through the official TIPS website.

Currently, 120 operators are active in the program. The expansion will bring the total to around 150, which is a significant increase in operator capacity since the initiative was launched in 2013.

Newly selected firms will first be designated as preliminary operators and, after two years of evaluation, may be promoted to full operator status.

How the TIPS Framework Works

TIPS is a public-private collaboration model where private venture firms identify and invest in promising startups. The government then provides matched support in the form of R&D funding and commercialization capital.

Since its launch, TIPS has supported more than 3,700 startups. Collectively, these companies have raised over KRW 17 trillion (approximately USD 12 billion) in follow-on investments, making the program one of Korea’s most significant levers for scaling early-stage technology ventures.

Prioritizing Regional Growth and High-Performing Investors

The new recruitment round will prioritize firms outside the Seoul metropolitan area, offering maximum preference points to non-capital region VCs. The aim is to balance Korea’s startup ecosystem, which remains heavily concentrated in Seoul, with more vibrant regional hubs.

Additional scoring will be given to operators with strong pre-TIPS recommendation records and those already engaged in scale-up TIPS initiatives. These criteria are designed to ensure that selected operators not only bring new deal flow but also demonstrate proven capacity to nurture startups through later stages of growth.

Policy Leaders Emphasize Operator Role in TIPS Success

Cho Kyung-won, Director of Startup Policy at MSS, emphasized the critical role of operators in the program’s success:

“The reason TIPS has been recognized as a successful program is the active participation of capable operators. We expect outstanding investment firms to join as TIPS operators, discover more promising technology startups, and provide growth opportunities that will revitalize the startup ecosystem.”

2025 TIPS Expansion: Strategic Impact on Korea’s Startup Landscape and Global Investors

The expansion of Korea’s 2025 TIPS program reflects the new administration’s economic growth strategy, which highlights “discovering promising companies through TIPS” as a core priority. In a domestic market constrained by limited scale compared to global peers, it is vital to nurture high-potential ventures and link them to later-stage capital.

Korea’s model also offers global investors a reference point in how government intervention can amplify private-sector discovery. By elevating regional VCs and high-performing operators, MSS is signaling that balanced national growth carries equal weight to capital concentration in Seoul.

In the wider Asia-Pacific context, the TIPS model stands out even more as a replicable framework: private investors lead, government follows with capital matching, and performance evaluation ensures accountability.

TIPS as the Cornerstone of Korea’s Startup Policy and Future

Korea’s decision to expand TIPS operators by 30 in 2025 reinforces the government’s commitment to bridging private capital with public resources. The program’s track record—3,700 startups and KRW 17 trillion in follow-on funding—demonstrates its influence not only on domestic venture growth but also on Korea’s positioning in the global innovation economy.

Eventually, global founders who seek entry, investors considering co-investment, and policymakers designing their own frameworks will see the move as a clear sign that South Korea is betting on TIPS as one of the cornerstones of its startup policy. And the results will be closely watched well beyond its borders.

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