South Korea’s government plans to designate 10 cities as major hubs for vibrant startup ecosystems by next year, aiming to foster balanced regional growth and create crucial job opportunities for young people. This ambitious initiative was announced by the finance ministry on Friday.
This year, the Ministry of Finance and Economy will first establish four cities – Daejeon, Daegu, Gwangju, and Ulsan – as key startup hubs. These cities were chosen due to their existing major science institutes. An additional six cities outside the greater Seoul metropolitan area, identified for their high potential, will be named as startup centers next year. This strategic rollout was revealed during a pivotal meeting focused on the economy and strategies for boosting the national startup ecosystem.
The ministry underscored that this initiative is vital for promoting equitable regional growth. Currently, the majority of the nation’s startup infrastructure is concentrated in Seoul, leading to a population outflow and lack of industrial development in other regions across South Korea.
While South Korea boasts the No. 20 ranking globally in startup ecosystem competitiveness, driven by significant investments in research and development and active patent applications, only three Korean cities are featured in StartupBlink’s top 500 global startup cities list. This data, cited by the ministry from the global startup ecosystem research platform, highlights a disparity.
For comparison, the United States leads with 137 cities on the list, followed by Britain (34), Germany (27), China (26), and Japan (6).
Through this comprehensive program, the Korean government targets cultivating five cities capable of achieving a spot within the top 100 global startup cities by 2030.
To achieve these goals, the government will support these chosen cities in becoming educational centers for aspiring young entrepreneurs. Furthermore, each city will be encouraged to develop its own specialized industrial focus; for instance, Daegu will concentrate on robotics startups, Gwangju on artificial intelligence and smart energy, and Ulsan on future mobility solutions.
A holistic support package is also being devised to facilitate the creation and sustainable growth of startups in these designated areas. This package encompasses robust R&D, investment, and networking support, alongside a crucial streamlining of regulatory processes, as detailed by the ministry.
Beyond the designated hubs, the ministry also committed to assisting rural regions. This support will involve developing businesses that leverage unique local resources in culture and tourism to stimulate local economies. Additionally, companies located outside the bustling Seoul metropolitan area will receive preferential benefits when bidding for public procurement projects, further encouraging regional economic activity.
“Building on the golden window of opportunity created by the semiconductor boom, the government will work to strengthen the foundations for our economy to reemerge as a global leader by advancing proactive industrial innovation and promoting startups,” stated Finance Minister Koo Yun-cheol, emphasizing the nation’s commitment to future economic leadership.
