SEOUL, SOUTH KOREA – The Seoul Metropolitan Government has announced a significant investment of 8 billion Korean Won (approximately $6 million USD) this year to aggressively foster the growth of companies specializing in cutting-edge artificial intelligence (AI) technologies. In a strategic move to facilitate international expansion, the city will also introduce overseas demonstration projects, providing Seoul-based enterprises with opportunities to showcase their innovations in global markets. Furthermore, incentives will be implemented to encourage robust participation from demonstration institutions.
The city's ambitious plan was unveiled today with the announcement of the first round of applications for its flagship ‘Testbed Seoul’ program (general projects), open until April 21st.
Launched in 2018, Testbed Seoul pioneered the concept among South Korean local governments by directly addressing the critical lack of real-world testing opportunities often faced by small and medium-sized enterprises (SMEs), startups, and venture companies. This initiative operates as a crucial post-R&D phase within Seoul's broader R&D framework, bridging the gap between technological development and successful market entry. Over the past seven years, the program has channeled a substantial 68.3 billion KRW into supporting 206 projects spearheaded by Seoul-based companies.
Building upon its established success, the Seoul Metropolitan Government is now strategically pivoting to prioritize the cultivation of AI-driven technologies and actively pave the way for local businesses to penetrate international markets.
A key aspect of this enhanced strategy involves significantly increasing the proportion of AI and AI-convergent projects within the Testbed Seoul program. This year, over half of the 40 selected demonstration projects will focus on AI-based innovations, a substantial increase from the 25.7% (53 out of 206 projects) dedicated to AI in the program's first seven years. This targeted approach aims to nurture globally competitive AI enterprises within the city.
Recognizing the importance of global market access, Seoul will extend the scope of its demonstration projects beyond domestic borders. The city will collaborate with accredited testing and certification bodies possessing established international branches, leveraging their overseas networks and infrastructure to facilitate real-world testing and validation of Seoul-based technologies in foreign markets. This initiative will provide invaluable opportunities for local companies to gain international recognition and build a track record in diverse operating environments.
To further incentivize participation and ensure the successful adoption of groundbreaking technologies, an incentive system will be introduced. This will include offering mayoral commendations and other forms of recognition upon successful matching of projects with demonstration sites and the successful completion of testing phases. This aims to prevent promising innovations from languishing due to a lack of validation and market exposure.
Seoul-based SMEs possessing innovative technologies in sectors such as AI, robotics, and the Internet of Things (IoT) are eligible to apply for the first round of the Testbed Seoul open call. The city has identified approximately 60 key demand-driven project areas for this year, including:
Technology for measuring flood levels in densely populated semi-basement housing areas.
Artificial intelligence-powered unmanned autonomous cleaning vehicle technology.
Technology for diagnosing anomalies and establishing alert systems for electric vehicle batteries.
While these represent key areas of interest, the program also encourages companies to propose their own innovative projects outside of these pre-defined categories.
Successful applicants will receive access to suitable demonstration sites for up to one year and financial support of up to 200 million KRW per project to facilitate the testing and validation of their technologies. Companies that successfully complete their demonstrations will be awarded an official certification from the Mayor of Seoul, enhancing their credibility and market standing. Furthermore, they will benefit from a suite of follow-up support programs, including consulting for registration as innovative products with the Public Procurement Service, support for participation in both domestic and international exhibitions, and assistance in attracting investment.
Joo Yong-tae, Head of Seoul Metropolitan Government's Economic Policy Division, emphasized the city's commitment, stating, "We are dedicated to bolstering Seoul's future industrial competitiveness in vital sectors such as AI and robotics. This initiative is designed to provide our innovative companies with the resources and opportunities they need to not only thrive domestically but also to confidently expand their reach into the global marketplace."
This significant investment and strategic focus on international collaboration underscore Seoul's ambition to become a leading global hub for AI innovation and to actively support its local enterprises in achieving international success.
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