Samsung, SK hynix verify local deep tech firms' semiconductor gear as govt pledges W5.5b

Deep tech startups developing domestically produced cryogenic equipment for semiconductor manufacturing and AI-powered leak detection for underground water pipes are set to receive concentrated support from the government and private sector.

The Ministry of Science and ICT and the R&D Special Zone Promotion Foundation held the 2026 R&D Special Zone Deep Tech Startup Challenge at GS Tower in Seoul on Thursday, announcing the selection of six promising deep tech companies.

Now in its fifth year, the event drew from a pool of 182 companies identified through investment road shows and open calls held across four regional zones nationwide since June. The final six were chosen after more than three months of evaluation based on technological differentiation, commercialization potential and growth prospects.

Following a public IR session that day, Cryo H&I took the top Deputy Prime Minister's Award, while SC Solution Global claimed the excellence award.

Cryo H&I, the top prize winner, has localized cryogenic refrigerators, cryopumps and helium compressors — equipment South Korea had long relied on imports to supply.

The company demonstrated its capabilities by completing mass production verification in semiconductor processes at Samsung Electronics and SK hynix. It has also been expanding into dilution refrigerators, a key cooling component for quantum computers.

The firm is set to receive a total of 1.5 billion won ($1.12 million) — 1 billion won in private investment and 500 million won in government R&D funding.

Excellence award winner SC Solution Global developed LeakMaster, a leak detection solution combining AIoT sensors with deep learning-based location estimation technology.

The system uses AI to pinpoint leaks in underground water pipes and has secured a supply contract worth about 13.5 billion won with Air Selangor, Malaysia's largest state-owned water utility.

The company has also supplied its solution to major domestic clients including Korea Water Resources Corporation, Posco and Samsung Electronics. It is set to receive a total of 1 billion won — 500 million won in private investment and 500 million won in government R&D funding.

Across the challenge, four companies with confirmed investment commitments will share a combined 5.5 billion won ($4.1 million), combining 3.5 billion won in private venture capital with 2 billion won in government R&D grants.

Three investment firms participated in the funding: Enlight Ventures, Innopolis Partners and Sema Investment.

Since last year, the government has restructured its support model away from technology competitions toward a framework linking private investment with follow-on R&D funding. The shift aims to strengthen the foundation for early-stage deep tech companies that have strong technology but struggle to secure capital and achieve commercialization.

"The package support combining R&D and investment through the R&D Special Zone Deep Tech Startup Challenge will serve as a springboard for deep tech companies to grow rapidly," said Koo Hyeok-chae, first vice minister of science and ICT. "We will lead government-private cooperation to identify promising deep tech startups early and help them generate major results."