344 firms apply for newly launched AI league
Industry-specific AI solutions lead with 50.9 percent
32 companies advance, including Innovative Startup League entrants
Top 20 to compete in grand final for prize up to 500 million won
![[Ministry of SMEs and Startups]](https://wimg.heraldcorp.com/news/cms/2026/09/09/news-p.v1.20260908.f58ed45808824f708d678cd882c3ebcf_P1.jpg)
A total of 344 early-stage startups applied for the government's first-ever artificial intelligence startup competition this year, with 10 of them earning a spot in the cross-ministry integrated finals.
The Ministry of SMEs and Startups said Wednesday that it had selected 32 companies to advance to the integrated finals of the 2026 K-Startup contest, a cross-ministry startup competition, through the preliminary rounds of its AI League and Innovative Startup League.
The K-Startup contest targets early-stage companies founded within the past three years. Nine government bodies — including the Ministry of SMEs and Startups, the Ministry of Science and ICT, the Ministry of Education, the Ministry of National Defense and the Ministry of Culture, Sports and Tourism — each run a specialized league. Top performers from each league compete in the integrated finals. A total of 130 teams will advance to this year's integrated finals.
The AI League, launched for the first time this year, drew applications from 344 companies. By category, "industry-specific AI solutions" that apply AI to particular sectors accounted for more than half, with 175 companies, or 50.9 percent. "General-purpose AI solutions" followed with 106 companies, or 30.8 percent, ahead of AI infrastructure with 43 companies, or 12.5 percent, and physical AI with 20 companies, or 5.8 percent.
After document review and in-person evaluations by AI experts and investment and management specialists, 10 companies advanced to the integrated finals.
The AI League's top prize went to Intellisia, which offers market research solutions using AI-generated virtual "synthetic consumers." The approach is designed to cut the time and cost of traditional market research methods that rely on recruiting real consumers.
Intellisia builds virtual synthetic consumers based on real human data to carry out companies' market research tasks, including surveys and qualitative interviews. Since launching its synthetic consumer solution, TheSurvey.ai, in May 2025, the company has conducted proof-of-concept projects with 70 companies.
Runner-up honors went to Aidol, which developed a solution using neuro-symbolic AI technology to prevent malfunctions in physical AI systems.
Notably, more than half of the entries in this year's AI League focused on industry-specific AI solutions aimed at solving problems in particular sectors. Relatively few focused on developing general-purpose AI models themselves. This suggests a relatively large number of early-stage startups sought to commercialize AI by applying it to individual industries such as content, education, biotech and health care. The physical AI category, which combines hardware with AI, accounted for 20 companies, or 5.8 percent of all applicants.
The Innovative Startup League, open to startups across all sectors, drew 630 applications. After regional preliminary rounds at 17 Centers for Creative Economy and Innovation nationwide narrowed the field to 66 companies, a comprehensive preliminary round selected 22 companies for the integrated finals.
The top prize went to The Ace Company, which developed an AI video detection system to prevent process accidents on semiconductor wafers. Runner-up honors went to Dear Onion, an AI agent company that helps restaurants order food ingredients.
The 130 teams selected across the various ministry-run leagues will begin the integrated finals on Sept. 22. Twenty companies will advance from the integrated finals to the grand final. Winners of the grand final will receive prize money of up to 500 million won ($372,000) as well as preferential treatment when selected for follow-up support programs such as the early-stage startup package.
"The companies driving innovation and growth in future new industries, including AI, are startups that take on challenges based on new technologies and ideas," said Mok Seung-hwan, head of the Startup and Venture Innovation Bureau at the Ministry of SMEs and Startups. "It is especially meaningful that we were able to discover promising AI startups through the AI League, which was newly launched this year."
boo@heraldcorp.com
