LG accelerates moves to help local startup
Winners of an LG-organized nationwide competition to help local startups pose with the logo of the group’s creative economy center in North Chungcheong Province, Tuesday. / Courtesy of LG
Group helps ventures commercialize ideas
By Kim Yoo-chul
LG has become a strong supporter of the government’s “creative economy” policy with aid packages benefitting small ventures and startups.
Korea’s top-tier conglomerate said it has teamed with the company-funded creative economy center in North Chungcheong Province to develop business ideas to commercialization.
“LG chose 10 ideas, via a nationwide competition, in which local ventures and individuals could utilize personal patents and patents that were allowed to be used free of charge by state-owned agencies and institutions,” LG spokesman Terry Taekyung Lee said Tuesday. “Winners will receive technology and marketing support.”
LG’s North Chungcheong creative economy center will pay for the purchase of patents that were developed by local ventures and individuals to help them export products and generate profits.
In the category of beauty and lifestyle, MacroCare, a regional supplier of raw materials for cosmetics, was one of the winners.
The Ochang, North Chungcheong Province-based outfit owns patents to make Steviol, a material used in various pharmaceuticals like anti-aging products.
“MacroCare plans to introduce new makeup products by using its Steviol manufacturing and related fermentation technologies with LG Household & Healthcare, allowing the local startup to use its two patents for anti-aging substances,” Lee said. He said this type of collaboration will lead to jobs in related industries.
Sungchang Telecom is also a beneficiary of LG’s program.
“Sungchang’s development corresponds with LG’s moves to develop energy-saving business systems,” LG said. “LG will help the venture develop its achievements to commercialization.”
Samson, the winner of the chemical and energy category, has developed a world-first solution to strengthen the safety of bolts and nuts in the manufacturing processes, even under high pressure and other external factors.
Samson aims to expand the sale of its products with LG support.
Lee said the “Patent Support Zone” at the creative center is helping help seven ventures develop their business ideas with 142 patents from the LG Group of affiliates.
“The zone is in discussions to offer 60 additional patents to 10 more companies,” Lee said.
The government’s “creative economy” policy aims to support and expand small and medium businesses.
Seoul allocated 3.31 trillion won to support startup companies as new growth engines, while the Small and Medium Business Association earmarked 3.9 trillion won in 2014 and 4 trillion won this year to support startups, the government said.
The initiatives are intended to reduce the country’s reliance on conglomerates and instead focus on promoting small and medium industries.
LG’s North Chungcheong center is the result of collaboration with the regional government and is one of 17 centers across the country supporting startup ventures.