Startup – Government Plans Ten Regional Startup Hubs to Boost Jobs
Startup – The government has unveiled a plan to identify ten cities as key centers for startup development by next year, aiming to spread economic opportunities more evenly and generate employment for young people.
The announcement, made by the finance ministry on Friday, outlines a phased approach to strengthening entrepreneurial ecosystems beyond the capital region. Authorities believe the initiative will help reduce regional disparities while encouraging innovation across multiple parts of the country.
First Phase Focus on Science-Centered Cities
In the initial stage, four cities known for their strong academic and research foundations—Daejeon, Daegu, Gwangju, and Ulsan—will be officially designated as startup hubs within the year. These locations host leading science and technology institutions, making them suitable environments for nurturing new businesses.
The government intends to expand the program further by selecting six additional cities outside the Seoul metropolitan area next year. These cities will be chosen based on their potential to support growing startup communities and attract investment.
Addressing Regional Imbalance
Officials emphasized that the current startup ecosystem is heavily concentrated in Seoul, leaving other regions struggling with limited industrial opportunities and declining populations. By developing new hubs across the country, the government hopes to encourage more balanced regional growth and prevent talent migration դեպի the capital.
The initiative was introduced during a policy meeting focused on economic strategy and measures to strengthen the startup landscape nationwide.
Global Standing Highlights Need for Expansion
According to data cited by the ministry, the country ranks 20th globally in startup ecosystem competitiveness. While it has made strong progress in research and development investment and patent activity, only three of its cities currently appear among the world’s top 500 startup locations.
In comparison, the United States leads with 137 cities on the list, followed by countries such as the United Kingdom, Germany, China, and Japan. Officials view this gap as an opportunity to expand the nation’s global presence in innovation-driven industries.
Long-Term Goal for Global Recognition
The government has set a target to place at least five domestic cities among the world’s top 100 startup hubs by 2030. To achieve this, each designated city will be encouraged to develop a distinct industrial focus aligned with its strengths.
For example, Daegu is expected to specialize in robotics, Gwangju in artificial intelligence and smart energy, and Ulsan in future mobility technologies. This sector-based approach is designed to create competitive advantages and attract both domestic and international investors.
Comprehensive Support Measures Planned
To support startups in these regions, authorities plan to introduce a wide-ranging assistance package. This will include funding for research and development, improved access to investment, and stronger networking opportunities for entrepreneurs.
In addition, regulatory processes will be simplified to make it easier for new businesses to launch and expand. Educational programs will also be developed to train young entrepreneurs and equip them with the skills needed to succeed in competitive markets.
Boosting Rural Economies Through Innovation
Beyond major cities, the government also aims to support rural areas by promoting businesses that utilize local cultural and tourism resources. This strategy is expected to stimulate local economies and create new sources of income outside traditional industries.
Companies operating outside the Seoul metropolitan region will receive additional advantages when bidding for public procurement projects, further encouraging decentralization of economic activity.
Government Emphasizes Opportunity for Economic Renewal
Finance Minister Koo Yun-cheol highlighted that the initiative comes at a crucial time, noting that recent growth in the semiconductor sector has opened a window for broader economic transformation. He stated that the government will focus on strengthening industrial innovation and supporting startups to position the country as a global leader once again.