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"The Youth Startup Academy (hereinafter referred to as YSA) serves as a public education institutional investor for entrepreneurs in local regions. While the capital area has ample infrastructure beyond the YSA, in regional areas, the YSA is the sole school and ladder of opportunity."
Jung Ji-sung, an entrepreneur who graduated from the 6th and 7th cohorts of the Youth Startup Academy, made these remarks at the "From the Start of Entrepreneurship to Growth" seminar held at the National Assembly Building Conference Hall on the 28th. The seminar was jointly hosted by the YSA alumni association and Democratic Party lawmaker Jang Cheol-min following the government's decision to disband the YSA starting next year. Over 100 entrepreneurs who graduated from the YSA attended the seminar.
Launched in 2011, the YSA has provided comprehensive support including up to 100 million won in commercialization funds, office space, prototyping facilities, and education and coaching for early-stage entrepreneurs under the age of 39. Over 16 years, it has produced over 9,300 entrepreneurs. Viva Republica (Toss), Zigbang, and other unicorn companies or KOSDAQ-listed firms such as SOS Lab and OpenNol are also alumni of the YSA.
Although graduate companies are showing results, the Ministry of SMEs and Startups plans to disband the YSA starting next year due to numerous operational inefficiencies. Minister Lee So-young explained at a personnel hearing on the 15th that one of the reasons for the disbandment is the low occupancy rate of the space provided by the YSA, stating, "The application rate for residency is only in the 8th% range."
However, companies founded by YSA alumni maintain that even if inefficiencies are improved, they cannot accept the decision to disband. Ryu Jeong-won, president of the YSA Alumni Association and CEO of Hillserion, stated, "If there were inefficiencies, the system could have been reformed," adding, "It is regrettable to disrupt an ecosystem that nurtures junior entrepreneurs like Silicon Valley." Lee Geum-yong, founder of Dojeonggwanam (a pioneering domestic venture company), also criticized the move, saying, "I cannot understand the reason for eliminating the trust capital known as the YSA."
Especially at this seminar, concerns were raised regarding the negative impact of disbanding the YSA on the regional entrepreneurship ecosystem. Jeong Ji-seong (CEO) remarked, "Thanks to the YSA, successful senior entrepreneurs came to their hometowns and shared their know-how without reservation, allowing young representatives in local regions to nurture their dreams." He added, "The Daechi-dong star instructor was an educational institutional investor who taught children in rural villages."
Of the 19th campuses nationwide, 14 are operated outside the capital area. This highlights the YSA's significant role in activating the entrepreneurship ecosystem in non-capital regions. In fact, some non-capital areas such as Jeju achieved policy goals last year with recruitment competition rates exceeding the national average (5.5 to 1).
Alumni members are calling for measures to maintain the YSA's network and brand even if the immediate disbandment next year is not reversed. Ryu Jeong-won (CEO) stated, "Please allow us to continue leveraging the 16th-year-old network connecting youth and regions as an asset of the Republic of Korea."
Jang Cheol-min (Rep.) said, "The existence of the YSA's invisible senior-junior ecosystem and network may have been unknown even to the Ministry of SMEs and Startups and the Budget Administration," adding, "We will strive to ensure that the National Assembly and government conduct various discussions and adopt a three-dimensional perspective when designing and evaluating future entrepreneurship support policies."
[MoneyToday Startup Media Platform Unicorn Factory]
in FUTURE
