Policy Update
Ayush Bansal
Background
India and South Korea have become dynamic collaborators in global entrepreneurship and innovation. India’s rapidly developing start-up ecosystem, supported by its young entrepreneurs and digital economy, is well complemented by South Korea’s high-tech industry prowess, R&D, and advanced manufacturing capabilities.
This cooperation was cemented through the inauguration of the India-Korea Start-up Hub in 2018, the India-Korea Centre for Research and Innovation (2020), and an MoU between Invest India and KOSME (2021). In addition, incubator collaborations between IIT Kanpur and the Korea Startup Forum and IIIT Bangalore and Sungkyunkwan University further enriched cross-border opportunities.
Functioning
Bilateral tech start-up incubators between India and South Korea operate through multiple formats:
- Government-to-Government Platforms
- The India-Korea Start-up Hub connects entrepreneurs, investors, and mentors. It functions as a digital bridge, facilitating co-creation, matchmaking, and soft-landing support for market entry.
- The IKCRI provides research partnerships and incubation opportunities in areas such as robotics, materials science, and healthcare.
- Institutional and Academic Incubators
- IIT Kanpur partners with Korea Startup Forum to provide mentorship and access to venture funding for early-stage companies.
- IIIT Bangalore’s Innovation Centre and Sungkyunkwan University’s Startup Support Foundation jointly host workshops, exchange programmes, market access initiatives, and more.
- Private and Accelerator-Led Programs
- Sangam India–Korea Knowledge Exchange Program of Unicorn Incubator serves as a cross-border accelerator, allowing start-ups to pilot products in one another’s markets.
- Initiatives such as the K-Startup Grand Challenge (KSGC) lure Indian start-ups to Korea, with grants, equity-free capital, and mentorship on offer.
- Financing and Market Access Support
- Korean venture funds and Indian angel networks are slowly creating co-investment platforms.
- Incubators sometimes act as middlemen to facilitate regulatory compliance and intellectual property (IP) protection for foreign-market entering startups.
Performance
The bilateral incubation setting has yielded rewarding results:
- Greater Startup Interaction: Over 200 Indian start-ups have interacted with Korean accelerators such as KSGC, and Korean start-ups are leveraging India’s vast consumer base through the India–Korea Hub.
- Enhanced Research Collaboration: Joint R&D projects under IKCRI in areas such as smart manufacturing and renewable energy have been growing.
- Measuring Academic Relationships: Increased interaction between students and faculty in innovation-driven institutions has led to pilot initiatives and entrepreneurial endeavours.
- Investment Flows: South Korean conglomerates such as Samsung, Hyundai, and LG have also started scouting Indian incubated start-ups for possible partnerships.
- Market Expansion: Indian start-ups are becoming major users of Korea as a gateway into East Asia, while the Korean start-ups view India as a pilot market for scalable business models in fintech, healthtech, and edtech.
- Job Creation Potential: Although exact figures are limited, these initiatives are fostering new employment opportunities in high-value technology sectors across both economies.
Impact
The two-way incubators are redefining India–Korea relations beyond the usual trade:
Incubators have shifted bilateral relations from traditional trade to new horizons in fintech, healthtech, and green tech. The diversification is making the economy more resilient and widening the cooperation horizon.
Korea’s manufacturing and hardware expertise merges with India’s digital innovations and software capabilities. Together, they co-develop globally competitive technologies that contribute to both economies.
- Entrepreneurship and Jobs
Incubators help these startups grow strong by pointing them to mentors and networks of seasoned pros and offering the first rungs up the startup stairway. These companies drive high-wage jobs and entrepreneurial activity in both countries.
- Human Capital Development
Exchange programs bring together students, researchers, and start-ups to forge cross-cultural and technical competencies. This exposure creates a globalized workforce capable of driving innovation.
- Diplomatic and Regional Influence
Innovation-driven collaboration strengthens bilateral trust and facilitates Indo-Pacific innovation policies. It makes India and South Korea emerging locations in the regional technology landscape.
Emerging Issues
Despite notable progress, several challenges hinder the full potential of bilateral incubation:
- Limited Scale
Current incubator programs reach only small groups of start-ups each year, limiting broader impact. Expanding access is crucial for building a stronger bilateral innovation ecosystem. - Sectoral Imbalance
Most initiatives focus heavily on ICT and digital sectors, overlooking deep-tech areas. Fields like semiconductors, biotech, and clean energy remain underrepresented in collaboration. - Funding Constraints
Start-ups face hurdles in accessing cross-border venture capital and seed-stage financing. Without adequate funding, their ability to scale internationally is restricted. - Regulatory Hurdles
Differences in IP protection, taxation, and compliance frameworks create additional challenges. These barriers often delay market entry and increase operational costs for start-ups. - Awareness Gaps
Entrepreneurs in smaller Indian cities often lack awareness of bilateral incubation programs. Limited outreach and language barriers further reduce inclusivity and participation.
Way Forward
Key suggestions to optimise bilateral tech start-up incubators would include:
- Establish Joint Sector-Specific Incubators
By building category-specific hubs in semiconductors, AI, healthtech and clean energy, sectoral collaboration could be further strengthened. Such targeted incubators can pool collective expertise and appeal to international investment.
- Establish an India-Korea Joint Start-up Fund
A joint venture fund would also offer important seed capital and de-risk early-stage investments. This capital flow system may foster even faster growth and international expansion for these start-ups.
- Develop Fast-Track Market Entry Mechanisms
Simpler visas, regulatory sandboxes and harmonised IP frameworks would smooth entry obstacles. Scaling is thus made smoother and cheaper than ever possible for an entrepreneur.
- Promote Regional Integration
Positioning bilateral incubators within Indo-Pacific networks will amplify their strategic influence. This will also help India and Korea collectively compete with larger innovation hubs.
- Enhance Awareness and Inclusion
Outreach programs targeting Tier-II and Tier-III cities can broaden participation in incubation. Language support and online platforms will make opportunities more inclusive and accessible.
Conclusion
India-South Korea bilateral start-up incubation is gradually evolving into a cornerstone of economic and technological diplomacy. The synergy of this collaboration will harness the country’s entrepreneurial and software capabilities to complement Korea’s technological edge and R&D assets, enabling them together to create a robust innovation corridor. Scaling up incubators, sector-specific hubs, and joint financing models will be crucial in making these collaborations drivers of sustainable economic growth in the Indo-Pacific region.
References
- Invest India. (2021, April 8). MoU between Invest India and KOSME supporting startup ecosystems. Retrieved from https://www.investindia.gov.in
- Startup India. (2018). India–Korea Startup Hub. Retrieved from https://www.startupindia.gov.in
- IIIT Bangalore. (2024, September). MoU between IIIT-B Innovation Centre and Sungkyunkwan University Startup Support Foundation. Retrieved from https://www.iiitb.ac.in
- NDTV. (2022, December 20). IIT Kanpur signs agreement with Korea Startup Forum. Retrieved from https://www.ndtv.com
- IKCRI. (2020). India Korea Centre for Research and Innovation. Retrieved from https://ikcri.center
- The Print. (2025, July). Unicorn Incubator concludes Sangam Indo–Korea Startup Knowledge Exchange Program. Retrieved from https://theprint.in
About the Contributor
Ayush Bansal is a research intern at IMPRI (Impact and Policy Research Institute), and is currently pursuing his master’s in economics from Gokhale Institute of Politics and Economics, Pune.
Acknowledgement
The author sincerely thanks Aasthaba Jadeja and IMPRI fellows for their valuable contribution.
Disclaimer
All views expressed in the article belong solely to the author and not necessarily to the organisation.
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