Recently, regarding the controversy over the delay within the R&D support fund of the startup incubation program TIPS, the Ministry of SMEs and Startups (Minister Oh Young-joo) has admitted the delay. As a substitute, the budget might be executed in order that the whole support amount could be executed by next yr. Nevertheless, the goal firms are expressing reluctance to the delay within the support fund.
Regarding the recent controversy over the postponement of subsidy payments, Choi Byeong-cheol, the director of the Ministry of SMEs and Startups, stated on the ninth, “The subsidy for the second half of the yr has been postponed just for firms that were chosen in 2023 and whose projects end in 2025.” He added, “We plan to secure the full subsidy amount by next yr.”
Nevertheless, he couldn’t immediately answer the explanation for the delay.
In relation to this, the federal government announced that it could also reduce the subsidy by 20% consistent with the R&D budget cut in the beginning of the yr. Aware of the industry’s backlash, Minister Oh Young-joo expressed his intention to pay normally, but it surely is analyzed that it was postponed to next yr since the budget was not secured.
In response to the query of whether it could be unimaginable to pay the delayed amount if the budget will not be secured next yr, the corporate stated that it could organize its internal position and supply a solution.
The TIPS program is the federal government’s representative startup support program. It’s a personal investment-led technology startup support program, and the federal government provides research funds when chosen firms apply for them.
Nevertheless, there have been a series of firms complaining that they’ve not yet received the subsidy. Some firms have even been notified that the subsidy was stopped without reason or unilaterally transferred to next yr.
It is understood that startups, especially within the early stages, may experience problems depending on the timing of payment, as subsidies account for a big portion of their operations.
When this news was partially reported, the Ministry of SMEs and Startups explained on the 18th of last month, “Now we have accomplished 100% payment of project costs for 486 projects that may end in 2024 by February.” It also said, “We’ll reflect the support funds for 599 projects that may end in 2025 within the 2nd half of this yr within the 2025 budget and pay them.”
Regarding this, an official from a startup that was chosen for the 2023 TIPS program said, “We were notified that the support funds for the second half of the yr might be carried over,” and identified, “I believe many firms might be bowled over by this unexpected news.”
One other startup chosen at the identical time also said, “There has never been a delay in the appliance for research funding,” and there are differing opinions on the factors for grant payment.
Reporter Park Soo-bin sbin08@aitimes.com
