Deepfake-Busting AI Startup SteelCut Wins Top Prize

Digital security visual symbolizing deepfake detection technology

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As of September 18, 2026, deepfake-detection startup SteelCut has won the top prize at a government-run AI startup competition for its two-part security tech, which blocks manipulation before AI content is made and flags deepfakes after the fact. The contest, designed to connect cash-strapped early-stage startups with investors, drew far more competition this year, with applicant numbers nearly tripling.

268 companiesStartups that applied this year

33.5-to-1Odds of making the finals

80 million won (~$58,000)Total prize pool split among the 8 finalists

Key points

SteelCut showed off a two-layer security solution: one part blocks manipulation before AI content gets made, the other catches deepfakes after the fact.
The finals were held at Texfair Hall inside Seoul's Textile Center on September 17.
Eight companies made it to the finals out of 268 total applicants.
Second prize went to Quantum Hitech, which built an AI platform that estimates a battery's remaining lifespan without taking it apart, and third prize went to autonomous-driving software maker Motif Drive.

The contest's full name is the Adventurous and Challenging AI Startup Investment Discovery Competition. South Korea's Ministry of Science and ICT (MSIT) put it together, with the Korea Telecommunications Operators Association (KTOA) — whose members include the country's three major mobile carriers — running the show day to day. Rather than leaning on revenue or funding track records, judges weigh how solid the technology is, how original the business model is, and how much room a company has to grow.

Now in its second year, the competition had a breakout run: applicants jumped from 91 last year to 268, pushing the odds of making the finals past 33-to-1. The surge in interest was enough for organizers to upgrade the top prize to a Deputy Prime Minister and Minister's Award.

Eight finalists who cleared the preliminary round faced off on September 17 at Texfair Hall inside Seoul's Textile Center. SteelCut, with its deepfake prevention and detection tech, took the top spot. Quantum Hitech, which built an AI platform that estimates a battery's remaining lifespan without taking it apart, placed second, and autonomous-driving software maker Motif Drive placed third. Five more teams picked up honorable mentions: voice-phishing detection service MetaCloud, manufacturing-floor AI infrastructure builder AllInCarbon, image-and-video generation platform Ziro, fintech-for-foreigners startup CrossHub, and construction-automation firm PlanBy Technologies.

Beyond the trophies, all eight finalists get a shot at funding through a pool backed by the mobile carriers. Organizers also announced a new fund aimed at early-stage companies, with priority going to startups under three years old and this year's winners. The top three teams get extra perks too: dedicated office space and a spot at overseas investor pitch events.

In Korea right nowWith concerns over deepfake harm growing across South Korea, interest in technology that can catch and stop it has grown right alongside it. The sharp jump in applicants this year is widely read as a reflection of that anxiety. With the government now planning a dedicated fund for early-stage startups, more founders are expected to jump into AI security in the months ahead.

FAQ

What does SteelCut do?

It's a Korean startup that built a two-part security solution: one layer stops AI-generated images and videos from being manipulated before they're created, and the other detects deepfakes after the fact.

What kind of event is this competition?

It's a government-run contest designed to find early-stage AI startups with strong technology and growth potential — even without much revenue or funding history — and connect them with investors.

What do winners get?

Cash prizes plus a shot at investment through a fund backed by South Korea's three mobile carriers; the top three teams also get office space and a seat at overseas investor pitch events.