Ministry of Science and ICT, broke through 1000 INNOPOLIS Research-based Spin-off Companies!

- The 1000th INNOPOLIS Research-based Spin-off Companies have been established in 15 years since the first Kolmar BNH in 2006.

- Total sales of about 739.4 billion won, 3,910 jobs created, and 69.8% survived five years after start-up (as of 2019)

□ Ministry of Science and ICT (Minister Choi Ki-Young, hereinafter "MSIT") and the Korea Innovation Foundation (President, Yang Sung-Kwang, hereinafter "Foundation") announced that the number of Research-based Spin-off Companies, the representative models of public research and commercialization, has surpassed 1,000.

ㅇ "Research-based Spin-off Company" is a commercialization model in which public research institutions that actively participate in the process of technology commercialization, as a responsible shareholder beyond technology supply contractors, established within INNOPOLIS to commercialize the research results of public research institutes*.

* Universities, Science and Technology-funded Research Institutes, Public corporations, Research-oriented hospitals, etc.

ㅇ After Kolmar BNH Co., Ltd. was established as the first Research based spin-off company in 2006, the era of 1000 Research-based spin-off companies has been reached in 15 years.

<  Number of spin-off companies established by year >

Division	`06~`13	`14	`15	`16	`17	`18	`19	`20.8
(Cumulative) number of establishments	46	89	160	339	520	704	891	1001

□ Through the development of excellent technology and competitive products, Research-based spin-off companies have contributed to job creation and innovation growth, with total sales of 739.4 billion won and employment of 3,910 people as of 19 years, and the average growth rate over the past five years ("15~'19) respectively, showing high growth rates.

* Research-based Spin-off Company's five-year survival rate (75.0%) is about 2.6 times higher than that of typical enterprises (28.5%), which is effective in early survival and growth

ㅇ In addition, after Kolmar BNH was first listed on KOSDAQ in 2015, Sugentech (2019) and Syntekabio (2019) were listed one after another, and three* Research- based Spin-off Companies were preparing to be listed.

* Micobiomed (Scheduled for 2020), Jinsystem (Scheduled for 2021), Maum AI (Scheduled for 2021)

ㅇ It took 7.6 years on average from start-up to IPO, which is about 1.7 times faster than the domestic average (13 years), which approaches to the world average of 6.3 years, showing excellent examples of the virtuous cycle structure of the venture ecosystem.

* Source: Establishing a virtuous circle of the venture industry, McKinsey & Co. (2015), Capital Market Research Institute (2017)

□ MSIT and the Korea Innovation Foundation held a commemorative event at the ICC Hotel in Daejeon on September 2 (Wednesday) to celebrate the achievement of 1000 Research-based Spin-off Companies and share its achievements and future vision.

* The event was held with a limited number of attendees (50 people or less) per the second stage of social distancing due to COVID-19, and the entire event was broadcasted live through YouTube.

ㅇ First of all, starting with a congratulatory video speech by the Prime Minister, The ceremony was held to award the certificates for 1,000th Research-based Spin-off Companies and commendations for meritorious people, and the event was held in the order of signing an investment agreement of senior companies to create a dedicated fund, an investment attraction agreement ceremony, and a panel talk to share successful Spin-off cases.

□ With the launch of the 1,000th Spin-off Company, MSIT has announced the "New Growth Strategy Vision for Research-based Spin-off Companies" to take a new leap forward to lead world-class high-tech and new industries beyond quantitative growth over the past 15 years.

* Easing the equity ratio of the invested institutions (currently 10-20% to 10%), readjusting the EXIT system of Research-based Spin-off Company, exempting government technology fees when carrying out R&BD projects, etc.

ㅇ MSIT has announced that it will prepare a "New Growth Strategy for Research Institute Spin-off Company" that will shape the vision through collecting opinions and present them to the "INNOPOLIS Committee."

Plan (Draft) to celebrate the achievement of the 1000th Research-based Spin-off Company

-Topic: New twist of the Spin-off Company, by the Spin-off Company and for the Spin-off Company -

□ Background

ㅇ Commemorating the establishment of the 1,000th Research-based Spin-off Company*, a representative model of INNOPOLIS' public research performance and commercialization (August 2020), and providing a venue for convergence to share its achievements and future visions.

* An enterprise established within INNOPOLIS with a capital investment of 10-20% or more depending on the capital (national tax, local tax reduction, task support, start-up and investment consulting support, etc.) for direct commercialization of public research institute technology.

□ Synopsis

ㅇ (Date/venue) 15:00~16:20, Sep. 2, 2020 / Daejeon ICC Hotel (tentative)

ㅇ (Attendees) About 50 key figures, including Yong Hong-Taek, head of MSIT's R&D Policy Office, National Assemblyman (Lee Sang-Min), Heads of public research institutes, representatives of related organizations and Research-based Spin-off Companies (Live YouTube)

ㅇ(Major content) The opening declaration of the Spin-off Company Renaissance for a new leap forward in the era of 1,000 Research-based Spin-off Companies (Private-led event concept)

- (Tentative agenda) Topic lectures, congratulatory speech(Prime Minister's video congratulatory speech), presentation of certificate and commendation of merit, investment attraction agreement ceremony, talk concert, the exhibition of excellent products, etc.

Attachment		Overview and Status of Research Institute Spin-off Companies

□ Overview

ㅇ (Meaning) the enterprise established by government-funded institutions within INNOPOLIS with a capital investment of 10 to 20% or more depending on the capital for the direct commercialization of public research institutes' technologies.

Division	Less than 1 billion won	1More than 1 billion won and less than 5 billion won	More than 5 billion won
Requirement ratio	20%	15%	10%

ㅇ (Requirements for establishment*) ① Founding entity, ② Capital (hold a certain percentage of corporate capital jointly or independently), ③ Purpose (direct commercialization of technology), ④ Region (existence of corporate headquarters in INNOPOLIS)

* Article 9-3 of the Special Act on the Promotion of INNOPOLIS (Establishment of Research-based Spin-off Company, etc.), Article 13 of Enforcement Decree of the same Act (Registration of Research-based Spin-off Company, etc.)

ㅇ (Founding entity) Public research institutes (Government-funded Research Institutes, Universities, etc.)*, industry-academia cooperation technology holding companies, new technology start-up builders, public research institutes, high-tech holding companies, etc.

* The Founding entity of Research-based Spin-off Company under Article 3 of the Enforcement Decree of the Special Act on the Promotion of INNOPOLIS (the scope of public research institutes)

ㅇ (Type of establishment) Established in three types according to the business entity and method of implementation

ㅇ (Benefits) Support for dedicated technical commercialization tasks (approximately 20 billion won/year), reduction of national and local taxes

Division		Benefits
National tax	Corporate tax	· 100% reduction for three years and a 50% reduction over the next two years
Local tax	Acquisition tax, registration tax	· Exemption
	Property tax	· 100% reduction over up to 7 years and 50% reduction over 3 years.

□ Establishment Status of Research-based Spin-off Companies by Year

ㅇ A total of 1,001 companies (Daedeok 348, Gwangju 154, Daegu 182, Busan 146, Jeonbuk 134, Small hidden(INNOPOLIS Plus) 37)

< Number of establishments by year >

Div.	‘06	‘07	‘08	‘09	‘10	‘11	‘12	‘13	‘14	‘15	‘16	‘17	‘18	‘19	‘20.10
Daedeok	2	4	6	7	3	6	7	3	16	34	60	44	71	66	19	348
Gwangju	-	-	-	-	-	-	1	2	7	13	23	40	27	30	11	154
Daegu	-	-	-	-	-	1	1	3	15	12	50	38	32	19	11	182
Busan	-	-	-	-	-	-	-	-	5	9	27	34	27	30	14	146
Jeonbuk	-	-	-	-	-	-	-	-	-	3	19	25	27	37	23	134
Plus	-	-	-	-	-	-	-	-	-	-	-	-	-	5	32	37
Total	2	4	6	7	3	7	9	8	43	71	179	181	184	187	110	1001

ㅇ (Type of establishment)

Division	Joint Venture Type	Existing company investment type	New start-up type
Number of companies (Ratio)	372(37.1%)	332(33.2%)	297(29.7%)

ㅇ (By technical field)

Division	IT	BT	NT	ET	Others
Number of companies (Ratio)	299(29.9%)	239(23.9%)	59(5.9%)	85(8.5%)	319(31.8%)

□ Sales and Employment Status

ㅇ (Sales and Employment) As of the end of 2019, the total sales amounted to 739.4 billion won, and the total number of employees was 3,910, and the average growth rate over the past five years was 26.1% and 34.5%, respectively.

< Sales and Employee Status of Research-based Spin-off Companies (Unit: KRW million, person >

Div.	‘09	‘10	‘11	‘12	‘13	‘14	‘15	‘16	‘17	‘18	‘19(E)
Sales	28,386	43,005	72,482	120,858	164,362	236,504	292,137	383,139	473,899	550,672	739,447
Employment	237	272	310	524	639	850	1,194	1,908	2,542	3,470	3,910

* Source: (2009~2018) INNOPOLIS Foundation Performance Tracking Survey Results, (2019) Management Status Results

Attachment		Status of Spin-off Companies Received Registration Certificate (No. 999~1001)

Number	Company name	Representative	Description
999th	Bioacts	Park Jin-Woo	- (Founder) Korea Institute of Science and Technology - (Type of investment) Joint Venture - (Business details) Expect to enter the global market since the contrast technology that directly applies fluorescence to living cells for identification is just at the beginning stage. - (Related technology) Development of the optical imaging contrast agent for improving the contrast accuracy of local diseases - (Location) 80-59, Golden root-ro, Juchon-myeon, Gimhae-si, Gyeongsangnam-do
1000호	Onecuregen	Jang Kwan-Young	- (Founder) Korea Research Institute of Biotechnology, Korea Science and Technology Holding Co., Ltd. - (Type of investment) Joint Venture - (Business details) Development of cancer treatment using new-anticancer substances and oral absorption enhancing drug delivery system - (Related technology) Use of VGLL1 as a target for cancer treatment or metastasis - (Location) 125, Gwahak-ro, Yuseong-gu, Daejeon
1001호	KSEcotech.	Kim Jae-Hwan	- (Founder) Korea Institute of Geoscience and Mineral Resources - (Type of investment) Joint Venture - (Business details) Business in the field of preventing and restoring soil pollution through the technology to suppress the occurrence of acid drainage and purifying contaminated soil - (Related technology ) Controlling the occurrence of acid drainage and facilitator for promoting vegetative cover - (Location) 124, Gwahak-ro, Yuseong-gu, Daejeon