The South Korean 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 including Daejeon, Daegu, Gwangju, and Ulsan, housing major science institutes, will be designated as startup hubs this year. The Ministry of Finance and Economy revealed that six more cities outside Seoul will be identified next year for their startup potential.
This initiative aims to address the imbalance in regional growth, as the current startup infrastructure is heavily concentrated in Seoul. South Korea ranks 20th globally in startup ecosystem competitiveness, with significant investments in research and development and active patent applications. However, only three Korean cities are listed among the top 500 startup cities, according to StartupBlink data.
The government targets to elevate five cities into the top 100 global startup list by 2030 through this initiative. Each city will focus on specific industries, such as Daegu for robotics startups, Gwangju for artificial intelligence and smart energy, and Ulsan for future mobility. The government will provide comprehensive support packages including R&D, investment, and networking support, along with regulatory streamlining to foster startup growth in these areas.
To stimulate the local economy, the government plans to assist rural regions in developing businesses leveraging their cultural and tourism resources. Additionally, companies outside the Seoul metropolitan area will receive benefits when bidding for public procurement projects. Finance Minister Koo Yun-cheol emphasized the government’s commitment to strengthening the economy through industrial innovation and startup promotion, building on the current semiconductor boom.
