Factory's Post 🇪🇺 #10

Factory's Post is back to deliver the insights you need for your business growth.💡 We've gathered the latest business trends, useful information for market entry, and hot news from the Korea-Europe ecosystem!

For the first time in 20 years, the APEC (Asia-Pacific Economic Cooperation) meetings returned to South Korea, culminating in the APEC Economic Leaders' Meeting on November 1, 2025. While official talks between world leaders drew attention, one unexpected moment stole the show: NVIDIA CEO Jensen Huang was spotted enjoying Korean fried chicken with Samsung Electronics Chairman Jay Y. Lee and Hyundai Motor Group Chairman Euisun Chung.

Since this "K-Fried Chicken Summit" quickly became the hottest topic of the week, we’,l take a closer look at what this viral meetup could mean for Korea’s AI ecosystem and whether it signals a new wave of momentum in the local market.

🇰🇷 South Korea’s AI Boom Beginning from APEC 2025

South Korea is making a decisive push to become one of the global leaders in artificial intelligence, framing AI as a national priority essential for its future competitiveness. The government’s 2026 budget proposal allocates a record 10.1 trillion won (around $7.3 billion) specifically for AI development — more than triple the current year’s amount — alongside an overall R&D budget of 35.3 trillion won, the largest increase in the nation’s history. This reflects Seoul’s determination to build an advanced AI ecosystem spanning semiconductor production, supercomputing, digital infrastructure, and human-capital development.

A major component of this strategy is close cooperation with global technology leaders. U.S. chip giant NVIDIA is partnering with the Korean government and domestic companies to supply more than 260,000 GPUs, a move expected to dramatically expand the country’s AI computing capacity. This collaboration highlights South Korea’s goal of reducing its dependence on imported technologies while simultaneously deepening partnerships with key global players in the AI hardware and software ecosystem.

Read more here.

🫂 Nota AI debuts on KOSDAQ — and a proud moment for us, too

Our long-time partner Nota AI, a South Korean company specializing in AI model compression and edge optimization, was listed on the KOSDAQ on November 3, 2025. Nota’s core technology — the NetsPresso® platform — enables AI models to run faster and lighter on-device, and has led to collaborations with global players such as NVIDIA, Qualcomm, Samsung, ARM, and Sony. Its generative vision-language-based monitoring tool, Nota Vision Agent (NVA), is now being adopted across smart manufacturing and mobility solutions.

With fresh capital and increased market trust, Nota AI is accelerating its expansion into the U.S., Europe, and the Middle East, targeting semiconductor makers, OEMs, and device manufacturers. Revenue has grown from $2.52M (2023) to $5.89M (2024), with a target of $10.17M in 2025 and profitability projected by 2027. As CEO Myungsu Chae put it, this milestone strengthens their vision of “AI Everywhere.”

This IPO is also a meaningful milestone for us at 123 Factory. We’ve worked with Nota AI since their earliest steps into Europe, often sharing the same building, overlapping team rooms, and trading small but meaningful day-to-day conversations. Over the years, we supported them in navigating local expectations, regulatory context, and early operational considerations as they set up their European presence — nothing flashy, just steady steps taken together. And when the listing became official, we celebrated in the most Korean way possible: both teams gathered and shared Ddeok(떡) - a typical food for celebration. A simple gesture, but it captured exactly how this partnership has felt — close, grounded, and human.

Investment

🚀 A Major TIPS Upgrade: More Money, Less Bureaucracy, Global Ambition

South Korea’s government will revamp its TIPS (Tech Incubator Program for Startups) in 2026 to better support deep-tech startups and strengthen the country’s global competitiveness.

The new TIPS model will merge existing tracks (General, Deep-Tech, Global) into a single system based on a startup’s growth stage, simplifying the structure and reducing bureaucracy. The maximum R&D grant will rise from KRW 500 million to 800 million (≈ USD 580,000), and the minimum private investment required from TIPS partners will increase from KRW 100 million to 200 million — though regional startups can still qualify with KRW 100 million.

The Global TIPS track will target later-stage startups with foreign traction, raising the required overseas VC investment to USD 1 million and increasing total possible funding to KRW 5 billion. Overall, the number of supported startups will grow from 520 to 620 in 2026, with major budget increases across all tracks.

By focusing on AI, semiconductors, biotech, and robotics, the reform aims to make Korea’s startup ecosystem simpler, larger, and more globally competitive.

Read more here.

Meet New Startups!

We'd like to take a moment to introduce you to some of the startups that we are working closely with and is also present in the AI bubble. Today, we would like to introduce Lululab, a Korean startup originally spun off from Samsung Electronics, specializing in AI-driven skin analysis and diagnostic technologies.

💆‍♀️ Innovative Skin Analysis

Lululab is a South Korean company based in Seoul that specializes in AI-powered skin analysis and beauty-tech solutions. Founded in 2017 as a spin-off from Samsung C-Lab, the company leverages a large global dataset of skin and beauty information to develop its products. Its core technology revolves around a skin data platform that analyzes skin conditions such as age, pores, wrinkles, pigmentation, and redness with AI, claiming over 92% accuracy based on more than 2 million skin data records worldwide.

In addition to its diagnostic device, Lululab also provides an AI-based SDK service that can be integrated into mobile, tablet, or clinic systems. What makes it interesting is that the system provides an objective skin assessment — analysing wrinkles, pores, pigmentation, and hydration — all through a single facial scan using a smartphone camera.

Its AI-driven solutions enable personalized product recommendations based on individual skin data, utilization of large-scale skin data for product and service development, and the transition from beauty-focused offerings to healthcare applications, including skin disease analysis.

123 Factory, Now

🔔 Open Call for DeepTech & Climate Innovators

123 Factory, in partnership with leading innovation organizations from Korea and Germany, has announced the launch of the DeepTech ClimAccelerator KOR–GER (2025/26 Cohort) — a 10-month joint acceleration program supporting research-based startups in scaling sustainable technologies across both markets. Applications are open until November 28, 2025.

The program aims to strengthen bilateral collaboration in DeepTech and ClimateTech by helping startups validate their technologies, localize for the German and EU markets, and build strategic international partnerships. Participants will receive structured support in market entry, proof-of-concept (PoC) development with corporates and research institutions, and matchmaking with investors and pilot partners.

The initiative also provides mentorship on EU sustainability frameworks (CBAM, LCA, Green Deal), business development coaching, and global visibility through a Demo Day in Germany.

👉 More information on our LinkedIn!
👉 Apply here! (until Nov. 28)

Let’s build climate impact that crosses borders. 🌱

🇵🇹 123 Factory Leads Korea’s Innovation Charge at Web Summit 2025

Together with the Seoul Business Agency (SBA), and eight exceptional Korean startups; Codepresso, Gadget Korea, Coconut Silo, Airet, Naeil SaengGak, Opticmix, Lyway, and Clika; 123 Factory brought the full strength of Korea’s deep-tech and digital-innovation scene to Web Summit 2025. From packed pitch stages to spontaneous investor meetups, our delegation quickly became one of the most talked-about groups, with visitors calling the Korean booths “the busiest corner of the entire summit.”

The passion and execution of every founder who showcased their vision on the global stage made this momentum possible. 123 Factory will continue building bridges between Korea and Europe and driving meaningful global impact together!

✨ Startups collaborating with 123 Factory showcased at the Korea National Day 2025

On October 24, 123 Factory participated in the Republic of Korea National Day event hosted by the Embassy of the Republic of Korea in Germany. This event commemorated Korea's National Day and celebrated the friendship and cooperation between Korea and Germany, bringing together government officials, business leaders, and investors from various sectors.

At this event, 123 Factory showcased booths for innovative startups growing with us (XO, Rightroute (Texnic), Nine to Six), showcasing Korea's technological prowess and creativity to the German audience. Visitors from diverse fields expressed significant interest in the potential for Korea-Germany startup collaboration and new market entry opportunities. ✨

🌏️ 123 Factory is joining the AsiaBerlin Summit 2025!

The AsiaBerlin Summit 2025 will take place from November 24 to 28 at Berlin's Rotes Rathaus and key partner venues!

This event is an Asia-Berlin startup conference gathering over 2,500 entrepreneurs, investors, policymakers, and ecosystem leaders centered around five key sectors: HealthTech, FinTech, GreenTech, Mobility, and Creative Economy.

123 Factory is participating as a Global Delegation Partner at this event, showcasing booths for our partner startups Lightroot (Texnic), Nine to Six, XO, and VTouch. They will represent Korea's technological prowess and creativity, seeking new collaborations and partnerships within Berlin's innovation ecosystem.

Stay tuned for the dynamic presence of 123 Factory and its partner startups at the AsiaBerlin Summit 2025—a stage for creative connections bridging Asia and Europe!

Upcoming Events

• AsiaBerlin Summit 2025 
  24-28 November | Berlin, Germany | Startups 
  Don’t miss your chance to be part of AsiaBerlin’s flagship innovation summit!

• AIoT Korea Exhibition & International Conference 2025 
  26-28 November | Seoul, Korea | AI & IoT 
  A venue for sharing AIoT technologies & services, such as digital transformation of all industries.

• COMEUP 2025 
  10-12 December | Seoul, Korea | Startups 
  Korea's flagship global startup festival, aiming to become a "Global Nexus" for innovation by connecting startups, investors, and corporations from around the world.

Thank you for reading Factory’s Post!
We’re always open to exciting news, promotions, and proposals to share with the 123 community. Feel free to contact [email protected], we’d love to hear from you! 😀