South Korea Moves to Preserve Youth Startup Academy After Closure Concerns

South Korea’s government is seeking a way to keep the Korea Youth Startup Academy operating after a proposed budget shift raised concerns that the long-running entrepreneurship program would effectively close.

Minister of SMEs and Startups Lee So-young said the ministry had decided to explore options for continuing the academy rather than abolishing it. Her comments came in response to a request that the government reconsider ending the program. Lee described the academy’s network of founders and graduates as an asset whose value could not be measured solely in financial terms.

The decision is not yet final. Lee said the program must be supported through the government budget, meaning her ministry cannot preserve it on its own. Any continuation plan will require coordination with the Ministry of Budget and Planning and must also be reflected in the National Assembly’s review of the 2027 budget. She asked stakeholders for patience while officials look for a structure that would prevent the academy’s 16th cohort from becoming its last.

The academy’s future became uncertain after the Ministry of SMEs and Startups proposed redirecting funding from the existing program to a new project focused on helping entrepreneurs recover after business failures. That proposal was widely interpreted as an effective termination of the academy in its current form. The latest statement signals a reversal in direction, but the details and funding have yet to be settled.

Established in 2011, the Korea Youth Startup Academy combines entrepreneurship education with practical support for young founders. It has produced about 9,300 entrepreneurs over 16 years, including founders associated with major Korean startups such as financial technology company Toss and property platform Zigbang. Supporters argue that its alumni network provides mentoring, business connections and accumulated experience that would be difficult to recreate under a replacement program.

The academy’s general alumni association recently held a seminar at the National Assembly to make the case for preserving the program. Participants emphasized the value of exchanges between earlier and later cohorts and urged policymakers to treat the academy as more than a temporary funding scheme.

Lee’s remarks also reflect her effort to solicit direct feedback from entrepreneurs. Before taking office in late September, she invited business owners to share problems they had encountered in the field and their experiences with government support policies. The academy’s fate will now be determined through the budget process, where the government must decide whether to maintain the existing platform, redesign it or combine it with its planned support for second-chance entrepreneurs.