Factory's Post 🇪🇺 #5

[123 Factory] Monthly Newsletter June 2025

Author

123 Factory
June 16, 2025

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!

From martial law in December to a presidential impeachment in April and the launch of a new government in June, South Korea has experienced a political whirlwind in just six months. Following the election of President Lee Jae-myung as Korea’s 21st president, his administration officially launched on June 4. 

With the political transition now complete, the new administration is moving swiftly to implement a comprehensive set of policies centered on economic revival, industrial innovation, and strategic diplomacy. Backed by strong political momentum, Korea is entering the second half of 2025 with optimism and recalibrated leadership. 

image=newsis

📈 Bold Economic Drive: Stimulus, Reform & Growth

President Lee's administration is signaling a strong pro-growth policy mix. The government is committed to reviving domestic demand and accelerating investment through aggressive fiscal and monetary coordination.

The policy focus includes:

  • Key growth sectors: AI, semiconductor, renewable energy, national R&D infrastructure

  • Support for emerging industries: autonomous vehicles, hydrogen economy, SMRs, drone tech

  • Regional development: stimulus for small/mid-sized construction and local SMEs

  • Capital markets: reforms to improve governance and reduce the "Korea Discount" with anticipated benefits for undervalued stocks and foreign investors

🚀 Strategic Industry Boost: AI to Green Tech

Korea’s next-gen industrial strategy emphasizes scaling up technologies that will define global competitiveness in the 2030s. AI and data infrastructure will receive significant public investment, alongside continued support for semiconductors and batteries. Cultural content, defense tech, and green industries are being positioned as future national champions. The government is also expected to cultivate emerging "theme" sectors like Arctic shipping, broadcasting, and hydrogen logistics.

Lee’s “national interest–first” diplomacy could also open new collaborative pathways with the EU in global standards setting, technology regulation, and economic security, especially in clean energy, AI, defense, and climate diplomacy.

Yet, the road ahead is not just simple. The new government faces deep structural issues like technological disruption, declining growth potential, and widening inequality. Global headwinds further complicate Korea’s economic outlook.

How Korea navigates this pivotal moment will be critical, not just for its own future, but for its role in the global economy. Stay tuned as we watch the next chapter unfold.

Government Support

🌟 EUREKA Lightweight Call opens again

The EUREKA Lightweighting Call supports international R&D projects in the field of lightweighting technologies. Lightweighting offers commercial and environmental value by reducing material usage, enhancing performance, and increasing energy efficiency across industries.

📘 Program Overview

  • Tender for the transnational Eureka Lightweighting F&E-Fördercall: Transnational Eureka lightweighting call - Eureka

  • Call opened: 15 May – 23 October 2025

  • Participating Countries: Austria, Belgium, Chile, France, Germany, Lithuania, Poland, Portugal, Slovakia, South Korea, Spain, Turkey, and Ukraine.

Internationale Matchmaking Platform (free) inkl. Projekt-Pitching Bereich: Home | Eureka Lightweighting Call 2025

Startups

🐣 Korea Picks 50 ‘Baby Unicorns’ Backed by Major Public Funding

South Korea’s Ministry of SMEs and Startups has announced this year’s 50 “Baby Unicorns”, early-stage startups with strong potential to scale globally. 43 of the selected firms specialize in deep tech fields like AI, big data, and mobility, reflecting the country’s emphasis on future industries. Selected companies will receive up to KRW 3 billion in market expansion funds and special guarantees of up to KRW 5 billion from Korea Technology Finance Corporation.

Among the recipients is Eflow, a next-gen mobility startup with high-efficiency in-wheel motor technology. We’re especially proud to see Eflow on the list, as we’ve been collaborating with them and witnessed their innovation firsthand!

Energy

🔋 Samsung SDI Strengthens Ties with Germany’s Tesvolt in ESS Market

Samsung SDI has signed a new battery supply deal with German ESS provider Tesvolt, reinforcing a partnership that began in 2017. The deal includes shipment of Samsung’s Battery Box (SBB) units, known for high durability, low noise, and advanced fire prevention through its Enhanced Direct Injection (EDI) system.

Tesvolt will integrate its own power conversion system and cybersecurity layer to customize the SBB for European clients. Samsung SDI has already booked 90% of its ESS battery production capacity for 2025, highlighting strong global demand, especially in Europe and the U.S. markets. Full article

Mobility

⚡️ Korea Greenlights 66 Regulatory Sandbox Projects in Mobility and Hydrogen

image=yna.co.kr

South Korea has approved 66 regulatory sandbox projects aimed at accelerating innovation in key sectors such as mobility, hydrogen energy, and next-gen defense technologies. These sandboxes offer temporary regulatory flexibility, allowing firms to test advanced technologies in real-world settings. 

Notable approvals include wireless charging for self-driving EVs by the Korea Automotive Technology Institute and hydrogen-powered unmanned underwater vehicles developed by the Agency for Defense Development. Kia has also been cleared to test a mobile hydrogen fuel cell generator for rapid emergency response. These pilots underscore Korea’s strategic focus on clean energy and resilient infrastructure.

Korea’s regulatory sandbox model offers a promising path for scaling breakthrough technologies—European innovators and partners in mobility and hydrogen may find new collaboration opportunities in this fast-moving landscape. Read more here.

Meet New Startups!

We'd like to take a moment to introduce you to some of the startups that will be joining us in the coming days, and first up is VTOUCH, winner of 11 CES Innovation Awards.

🌟 VTOUCH, Building the Future of Touchless Interaction

image=VTOUCH

At VivaTech 2025, Korean deep-tech innovator VTouch made waves with its groundbreaking spatial interface technologies. From its floating Holo Button that lets users "touch" holograms mid-air, to the sleek, voice-activated WIZPR Ring, and the gesture-based SpatialTouch platform, VTouch is redefining how humans interact with machines. Their demo attracted global attention, signaling a new era where technology adapts to people. Read the full article on Marie Claire.

Founded in 2012, VTouch develops AI-powered natural user interfaces that are both intuitive and contactless—ideal for environments like smart homes, vehicles, and public kiosks. The company has already received multiple CES Innovation Awards, including a double win in 2024 for its WIZPR Ring and Holo Button. It was also honored with Korea’s top invention award, solidifying its position as a global pioneer in user experience innovation.

VTouch is already working with major players like Samsung, LG, Hyundai Mobis, and Toyota, bringing its technology into real-world applications across industries. Whether in mobility, consumer electronics, or public infrastructure, VTouch is setting a new UX standard that prioritizes simplicity, hygiene, and elegance.

If you’re interested in partnering with VTouch, don’t hesitate to reach out to us!

123 Factory, Now

Moving day! View from our new CHIC balcony 😁 

As a bridge between the Korean and European startup and industrial ecosystems, we’ve spent the past three years at The Drivery, building bold ideas and strong partnerships as their Korean partner.

Now, we’re excited to share that we’ve moved to a new space:

 CHIC – Charlottenburg Innovation Center
📍 Bismarckstraße 10-12, 10625 Berlin

CHIC is one of Berlin’s eleven official Zukunftsorte (places of the future) — a hub for forward-thinking innovation and deep-tech entrepreneurship.

Although our base has changed, our connection with The Drivery community remains strong, and we’re looking forward to even more collaboration and new adventures ahead. This also includes ongoing cooperation with CIC to further expand our impact and network.

If you’re ever nearby or just want to catch up over a good cup of coffee, our door is always open.☕

Looking forward to creating more exciting things together!

Upcoming Events

  • Medi Expo Korea 2025
    20-22 June | Seoul, Korea | MediTec
    Expo, Conference, Demo day on Medical Technologies

  • 🌟 NextRise 2025
    26-27 June | Seoul, Korea | Global Startup Fair
    NextRise, the heart of Asia's startup scene, offers an array of exhibitions, conferences, business meetups, and partner events. It's a gathering point for the world's top startups to foster collaboration and innovation.

  • Nano Korea 2025
    2-4 July | Ilsan, Korea | Nano Tech
    As the global market place for commercialization of nanotechnology, Nano Korea is one of the Top 3 international nanotechnology convergence events.

123 Factory

Based in Berlin & Seoul, 123 Factory is a dynamic collaboration platform where Korean and European businesses grow together. We are a strategic partner driving innovation, helping European businesses enter the Asian market and vice versa. Let’s turn ideas into reality and scale your business together! 🚀

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! 😀