[StartupRecipe] 5 Korean Conglomerates Fuel Startup Growth Through Open Innovation

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5 Korean Conglomerates Fuel Startup Growth Through Open Innovation

Amid a prolonged investment downturn, Korean conglomerates are launching ambitious programs to collaborate with startups, providing critical funding, resources, and a pathway to global markets.

As the Korean investment market continues its slowdown, startups are finding it increasingly difficult to secure the growth capital and momentum they need to survive and scale. Stepping in to fill the void is a growing wave of open innovation initiatives driven by the nation’s largest corporations. This trend, once concentrated in the financial sector, has now swept across Korea’s industrial landscape, with giants like Samsung, LG, and Hyundai launching competitive programs to partner with the next generation of innovators.

These corporate-led initiatives go far beyond simple financial aid. They are creating structured pathways for tangible business collaborations, directly connecting startups with their vast networks of affiliates. Support packages typically include commercialization funds, expert mentoring, opportunities for Proof of Concept (PoC) validation, and direct investment connections. With many conglomerates having just finalized their first-half accelerator cohorts, a new season of collaboration is officially underway.

Samsung Electronics is at the forefront with its renowned C-Lab program, which fosters both internal and external startups. The initiative recently expanded its scope with the “Samsung Financial C-Lab Outside,” selecting 16 fintech startups to collaborate with four of its financial affiliates. Meanwhile, Samsung C&T’s Future Scape program is focused on the construction industry, selecting six startups to conduct PoCs for new technologies.

LG Group operates Superstart, a dynamic open innovation platform that showcases its collaborative successes at the annual Superstart Day. In the first half of this year, the group also completed recruitment for its “Net Zero Challenge” to discover promising cleantech startups. In a significant move, LG Uplus recently made headlines by investing 5 billion KRW in four AI startups through the inaugural batch of its “Shift” program. Looking ahead, LG Electronics plans to open its internal innovation program, “Studio 341,” to external startups, offering up to 400 million KRW in support.

Hyundai Motor Group drives its innovation efforts through the ZER01NE Accelerator, introducing its partner startups at the biannual ZER01NE Day. The company also demonstrates a commitment to social impact, nurturing social ventures through the H-OnDream program in partnership with the Mong-Koo Chung Foundation, which recently onboarded its 13th cohort. Other affiliates are also active: Hyundai E&C and Hyundai Home Shopping have partnered with the Seoul Business Agency to select companies for joint PoCs, while HD Hyundai Electric has concluded its search for startups in next-generation power technology.

The trend extends across various sectors. CJ Group is scouting startups in agrifood, logistics, and lifestyle through a suite of programs including O-VentUs and CJ Oncubating, which recently selected 9 and 25 companies, respectively, to work with its business units.

Similarly, Lotte Group, with Lotte Ventures at its core, is nurturing 10 companies through its flagship L-Camp accelerator and the specialized Future Food program. Highlighting the program’s success, its startups were recently featured at a major agrifood tech fair. Lotte’s efforts are notable for their active presence in the Busan region, with affiliates like Lotte E&C and Lotte Department Store also running their own innovation initiatives.

For startups navigating a difficult funding climate, these corporate partnerships are a welcome rain in a drought. This collaboration provides more than just capital; it offers a crucial launchpad onto the world stage. Most of these corporations sponsor joint booths at major global tech events like CES, MWC, and prominent Korean conferences like COMEUP and NextRise, giving the startups they foster invaluable international exposure.

This symbiotic relationship is poised to grow stronger. For the corporations, it is a strategic imperative to rapidly adapt to market changes and drive future innovation. For startups, it’s an essential lifeline. With active support from government policies designed to stimulate open innovation, this collaborative model is set to become an even more critical pillar of South Korea’s tech ecosystem.

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