Korea is highlighting the view that the next generation of unicorns may emerge from today’s small businesses. Through the MSS LICORN initiative, the government has designated 60 innovative SMEs as future growth engines, providing additional funding, market expansion pathways, and investment support to help them scale from local enterprises into globally competitive companies.

Strong Small Business Final Audition Identifies 60 Korea LICORN Firms

The Ministry of SMEs and Startups (MSS) announced the selection of 60 small businesses as part of its Strong Small Business Final Audition, held from August 25 to 28 at Ivex Studio in Gwangmyeong.

The audition is the culmination of the Strong Small Business program, designed to help entrepreneurs innovate products and services through collaboration with creators and startups.

In the first round in May 2025, MSS narrowed a pool of 7,147 applicants to 160 companies, each receiving up to ₩60 million ~(US$43,000) in commercialization funding.

From these companies, only 60 firms will be chosen in the final audition as LICORN companies — Lifestyle & Local Innovation Companies for Rising to Unicorns — highlighting their potential to grow into next-generation leaders in lifestyle and local innovation industries.

MSS LICORN: Funding and Global Expansion Support

Each of the 60 LICORN companies will receive additional commercialization funding up to ₩40 million (approx. US$29,000).

Beyond direct financial aid, MSS is extending linked support to help them become globally competitive, including:

• Opportunities for domestic and overseas market expansion.
• Connections to venture capital and financial institutions.
• One-on-one consulting in export, marketing, and promotional content.
• Advisory programs in investment, distribution, and management.

The initiative underscores the government’s effort to ensure that SMEs are not only sustained but positioned to thrive internationally — aligning with broader policies around Korean SMEs’ global expansion.

SMEs as the Unicorn Pipeline in Korean Startup Ecosystem

By designating LICORN firms, MSS is formalizing a pipeline from small businesses to future unicorns. The 60 companies represent sectors deeply tied to Korea’s lifestyle and cultural economy — including food, cosmetics, fashion, and local innovation — which are gaining global traction through the rise of K-culture.

Deputy Minister Noh Yong-seok highlighted the strategic importance:

“Global interest in K-culture is fueling attention to products from Korean small businesses in areas such as food, cosmetics, and fashion. The government will fully support creative and entrepreneurial small businesses to help them grow into global innovation firms.”

This approach reflects a shift in government startup support in Korea, where policymakers are increasingly viewing small businesses as essential drivers of startup ecosystem growth and not only as traditional service providers.

Next Steps: Recognition and Global Positioning

The 60 selected LICORN firms will be officially recognized at an awards ceremony on September 11, 2025, at the KBS Annex Public Hall in Seoul.

The event will also feature celebratory performances and investor networking sessions, further spotlighting these SMEs as core contributors to Korea’s innovation landscape.

Positioning Korean SMEs as the Next Drivers of Global Innovation

The MSS LICORN initiative signals a new phase in Korea’s small business policy and startup ecosystem strategy. By positioning lifestyle- and local-focused SMEs within the national innovation agenda, the government is expanding its view of entrepreneurship and redefining how Korea’s small businesses contribute to future growth.

For international investors and ecosystem stakeholders, Korea’s LICORN model serves as a case study in how targeted public support can transform SME funding and investment into a scalable platform for global startup growth.

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