What is TIPS?

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Museum SAN, Wonju

TIPS Operating Companies

Private VCs select startups on the government’s behalf.

TIPS is a government R&D program, but the government doesn’t pick companies directly.
The government essentially says, “You’re good at judging technology, so go find promising teams and recommend them” — and the VCs granted that authority are called “TIPS operating companies.”

Operating companies must invest their own money.

To apply for the TIPS program, the operating company’s seed investment has to happen first.

• Operating company → roughly 100–200 million KRW (seed investment)
• Government → up to 500 million KRW in R&D funding
• The structure: private investment first validates the technology’s potential, then the government matches it with R&D funding

“Investment from an operating company” amounts to a TIPS recommendation, but it doesn’t guarantee TIPS selection 100% of the time.

From the operating company’s investment perspective

A TIPS operating company isn’t just a plain seed investor — it invests in technology development on the premise that TIPS will follow.
So for the VC (operating company), this isn’t just about exit potential; it also means the risk that arises during R&D can be hedged using government funding.
Since this structure lets them pursue larger-scale R&D with a smaller amount of capital, the net effect is a “risk hedge.”

TIPS Tracks

TIPS has three tracks. Each track differs in funding amount and eligibility requirements.

• General Track
  • The standard track, covering technology startups broadly.
  • Funding: up to 500 million KRW, over a 24-month period
  • Eligibility: startups within 7 years of founding that have received roughly 100–200 million KRW in investment from an operating company
• Deep Tech Track
  • Targets high-tech startups in the 10 strategic “hyper-gap” fields (big data/AI, aerospace, bio-health, etc.)
  • Funding: up to 1.5 billion KRW, over a 36-month period
  • Requirements: stricter conditions such as at least 300 million KRW in investment from an operating company; startups within 10 years of founding
• Global Track
  • Targets startups with the capability and potential for global expansion.
  • Funding: up to 1.2 billion KRW, over a 36-month period
  • Requirements: at least 300 million KRW in investment from an operating company plus global-capability criteria such as overseas revenue or a foreign entity; startups within 10 years of founding

Post-TIPS

This is the follow-on extension support after TIPS.

You can apply if you received a “success” rating in the final evaluation and exceeded the requirements (revenue, hiring, investment, etc.),

or if you received a “success” rating and raised 1 billion KRW or more in subsequent private investment.

Funding is up to 700 million KRW, over a period of about 18 months.