The government plans to designate 10 cities as major startup hubs by next year to boost regional growth and create job opportunities for youth. Initially, four cities housing major science institutes will be selected this year, including Daejeon, Daegu, Gwangju, and Ulsan. Following this, six more cities outside the Seoul area will be named as potential startup hubs next year.
This initiative aims to address the imbalance in startup infrastructure concentrated in Seoul, leading to population outflow from other regions due to the lack of industrial development. South Korea ranks 20th globally in startup ecosystem competitiveness, with significant investments in research and development (R&D) projects and patent applications, but only three cities in the top 500 startup cities list.
The government aims to elevate five cities to the top 100 global startup list by 2030 through specialized support. For instance, Daegu will focus on robotics startups, Gwangju on artificial intelligence (AI) and smart energy, and Ulsan on future mobility. The support package will include R&D, investment, networking support, and regulatory streamlining to foster startup growth.
To stimulate the local economy, rural regions will be encouraged to utilize their cultural and tourism resources for business development. Additionally, companies outside Seoul will receive benefits when bidding for public procurement projects. Finance Minister Koo Yun-cheol emphasized the government’s commitment to promoting industrial innovation and startups to strengthen the economy.
