Opened a dedicated incubator for entrepreneurial small businesses ‘LICORN’

The Ministry of SMEs and Startups held the opening ceremony of the 1st LICORN TOWN in Sejong on the 4th, followed by a business agreement ceremony to establish a special guarantee programme for entrepreneurial small businesses and the 2nd ‘Small and Medium Enterprises Policy Council’.

LICORN TOWN is a space created to promote the establishment and growth of creative (future) small businesses and regional innovation. There have been many incubators for technology-based start-ups, such as TIPSTOWN, but this is the first time an open, comprehensive incubator for entrepreneurial small businesses has been established.

In particular, LICORN TOWN Sejong has been renovated free of charge by the local government in a single building that was left unused after the relocation of the existing Sejong Veterans Assembly Hall, and is expected to bring together local youth and innovative small business owners through cooperation between the central and local governments to inject new vitality into the surrounding area.

LICORN TOWN Sejong will have floors, with the first floor being a select shop and sales area where customers can experience and purchase products from entrepreneurial small businesses online. The second floor will be a co-working and living space for small entrepreneurs, and the third floor will be used for capacity building training and seminars.

At the opening of LICORN TOWN, a business agreement was signed to provide financial support to entrepreneurial small businesses. The Small Enterprise And Market Service (SEMAS), the Korean Federation Of Credit Guarantee Foundations (KOREG) and Kookmin Bank have joined forces to create a special $75.8 million (KRW 10 billion) guarantee programme to help entrepreneurial small businesses grow sustainably.

Under the programme, companies selected for the Ministry of SMEs and Startups’ flagship small business development programmes – New Business Startup Academy, Supporting Strong Small Business Growth, Vitalising Local Creators and Private Investment Matching Loans – will be able to secure funding with guarantees of up to $152,000 (KRW 200 million).

“Entrepreneurial small businesses are a new alternative to solve many of the problems facing our country, such as the disappearance of local areas and lack of competitiveness in the service industry, and they are the lifeblood of our economy,” said Oh Youngju, Minister of SMEs and Startups. “We hope LICORN TOWN will become a space that helps entrepreneurial small businesses grow into LICORN (Lifestyle & Local Innovation unicorns) and revitalise neighbourhood shopping districts, and we will expand LICORN TOWN nationwide in cooperation with local governments, starting with the Sejong branch.”

Meanwhile, the 2nd Small and Medium Enterprises Policy Council (hereinafter referred to as the “SME Policy Council”), held after the Opening Ceremony and Business Agreement Ceremony, shared the current status of SME policy and discussed the direction of future policy under the theme of “Promoting Small and Medium Enterprises”.

The SME Policy Council was organised by Minister Oh Youngju to fulfil her promise to the Korea Federation of Micro Enterprises when she was a candidate, and is a forum where associations and organisations representing the small business industry and individual small business owners participate to share their voices and discuss small business policies.

The SME Policy Council, held for the second time since 16 January, introduced the policies promoted by the Ministry of SMEs and Startups to foster entrepreneurial SMEs, and entrepreneurial SMEs active in the field shared their excellence by presenting cases of local commercial revitalisation and growth through new ideas.

Among the speakers, Sang-Chang Lee, CEO of Sesang Cafe, Chungju, shared how entrepreneurial SMEs can contribute to the development of local commercial districts by presenting a case of revitalising an unused space in the high-crime area that had been neglected for more than 10 years into a commercial district where young people gather, and introducing an autonomous commercial district management model through the formation of a cooperative.

Another speaker, HeeSun Moon, CEO of Delicious Market, whose motto is “Delighting the world with a variety of flavours”, shared her experience and expertise as a small business owner and explained how she was able to become a leader in a new food culture trend by using little-known Korean spices.

During the open discussion, the panelists discussed the policies needed for entrepreneurial small businesses to grow into LICORN, a regional brand and lifestyle innovator.

Minister Oh Youngju said, “I will seriously consider the opinions expressed at today’s SME Policy Council, and within a month, I will inform those who expressed opinions of the results of the review, and I will continue to monitor the progress.” “Even if it is a problem that is difficult to solve immediately, I, my staff and experts will put our heads together to find a solution and resolve the difficulties to the end, and I will generously support entrepreneurial small businesses to grow into companies that innovate the region,” she said, showing her active support for entrepreneurial small businesses.