TLDR: The Ministry of SMEs and Startups (MSS) in South Korea has initiated the ‘Open Data X AI Challenge,’ inviting startups to develop artificial intelligence solutions using public data. This program aims to address specific challenges posed by public institutions and foster innovation within the AI startup ecosystem.
The Ministry of SMEs and Startups (MSS) in South Korea announced on October 27, 2025, the launch of its ‘Open Data X AI Challenge.’ This significant initiative is designed to leverage artificial intelligence (AI) technology to tackle real-world problems identified by public institutions, by making their internal data accessible to innovative startups. The challenge is open to startups established within the last decade, with the application period set from November 6 to November 26.
Three prominent public institutions are actively participating in this contest: the Korea SMEs and Startups Agency (KOSME), the Small Enterprise and Market Service, and the Korea Technology and Information Promotion Agency for SMEs (TIPA). These institutions will present assignments across three crucial domains: predicting growth and risk for small and medium-sized enterprises, offering customized consulting services for small business owners, and recommending support programs via an integrated platform for SMEs. To facilitate the development of these solutions, processed and de-identified internal data will be provided to the participating teams.
The contest will unfold in three distinct stages: an initial document screening, followed by the finals, and culminating in an AI Startup showcase. During the document screening phase, evaluators will meticulously assess business plans, focusing on the direction of algorithm development and the validity and feasibility of the implementation plan. This will lead to the selection of 15 teams, with five teams chosen for each assignment, by early December. The finals are slated to begin with the opening ceremony of ‘COMEUP 2025’ on December 10 and will extend through late January of the following year. Finalist teams will be equipped with assignment-specific datasets to develop their AI models and will each receive 10 million won in funding. Furthermore, they will benefit from real-time technical support through a collaborative framework established with officials from the assignment-setting institutions.
Kim Woo-jung, Deputy Minister for Planning and Coordination at the Ministry of SMEs and Startups, underscored the profound importance of this challenge. He stated, ‘This contest is meaningful in that public institutions under the Ministry of SMEs and Startups disclose field data they actually use to AI Startups to discover AI solutions that help people’s lives.’ He further expressed his optimistic outlook, adding, ‘We expect AI models to be discovered that create real change as field demand and data in the public service sector and Startup technological capabilities are consolidated.’
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Upon the completion of the development phase, the AI models will undergo evaluation based on their accuracy, completeness, and growth potential. Crucially, feedback from actual small business and SME users will also be incorporated into the assessment. Ultimately, six winning and runner-up teams, two for each assignment, will be selected. This initiative firmly demonstrates MSS’s dedication to fostering AI innovation and leveraging public data for both societal benefit and economic advancement.
