The Small and Medium Business Administration (SMBA) announced on the 19th that it will be recruiting participating companies for the 'Everybody's Challenge' program, which aims to support collaboration between large cosmetics firms and innovative AI startups in the beauty and platform sectors. This initiative is part of a broader strategy to strengthen K-beauty competitiveness in overseas markets.
Initiated in April, the 'Everybody's Challenge' program is designed to foster the growth of new industrial startups by facilitating open innovation between these startups and leading organizations within strategic sectors, including cosmetics, defense, and robotics. This signals a significant push by the SMBA to enhance the capabilities and international reach of South Korean beauty companies.
The program specifically in the beauty and platform sectors integrates the infrastructure and data of major cosmetics companies like Amorepacific, LG Household & Health Care, and Korea Kolmar with the AI technological prowess of startups. The aim is to promote innovation in product and service offerings, enhancing customer experiences across the beauty value chain. This collaboration is pivotal in adapting to consumer behaviors and emerging trends in the global beauty market.
Through this recruitment process, a total of 15 companies will be selected for the program, utilizing data pertaining to ingredient formulations and product types from demand companies to support the development of AI-based solutions across research, manufacturing, and marketing sectors. Selected firms will receive collaboration funding of up to 100 million KRW and benefit from expanded market access via the marketing channels and distribution networks of these large corporations.
In addition to supporting beauty startups, the program also aims to harness platform companies' data and service infrastructure. This approach reflects a customer-centric strategy, aiding small business owners in digital management, thus accelerating the commercialization of innovative startups. This dual focus reinforces the SMBA’s commitment to fostering an ecosystem where both large and small enterprises can thrive.
Hangeul Sun-Sook, the Minister of the SMBA, emphasized that open innovation is an essential growth strategy to expedite the market entry of startups in rapidly evolving sectors. The SMBA is committed to driving similar open innovation support programs across other areas, including biotech, climate tech, and smart cities, ensuring that the growth trajectory of these sectors remains uninterrupted.
