The Ministry of SMEs and Startups is pushing a project to create 10 startup cities nationwide to strengthen regional startup ecosystems. The policy aims to spread startup infrastructure, now concentrated in the greater Seoul area, to the regions.
The Ministry of SMEs and Startups (MSS) said on the 24th that it announced the "startup city creation project" jointly with related ministries at the National Startup Era Strategy Meeting chaired by Koo Yun-cheol, deputy prime minister for the economy.
The government will first select regions hosting the four institutes of science and technology—Daejeon, Daegu, Gwangju, and Ulsan—as tech startup cities to build a leading model, then designate six more cities to establish 10 startup hubs by 2030. The ultimate goal is to create five cities ranked within the global top 100 startup ecosystems.
Selected regions will receive focused support for technology startups leveraging university and research institute talent, public institution data, and test-bed infrastructure. Centered on the institutes of science and technology, the government also plans to expand university-based startups by designating deep-tech startup-centered universities and launching new startup organizations.
Investment support to strengthen the growth base of regional startups will also be expanded. Starting this year with a 450 billion won regional growth fund, the government plans to create sub-funds totaling 3.5 trillion won by 2030. It will also expand startup-exclusive research and development (R&D) and TIPS support.
In addition, the government plans to expand designations of regulatory free zones and to bolster residential and work infrastructure for startups, such as shared dormitories and office spaces. Support for technology startups utilizing regional public institution data and test-bed infrastructure will proceed in parallel.
Regions selected as startup cities will receive fiscal support starting in the second half of this year. The government plans to form a startup city task force with participation from local governments, universities, and research institutes to build a regional startup ecosystem based on public-private cooperation.
Minister Han Seong-sook of the Ministry of SMEs and Startups (MSS) said, "The startup city creation project is a policy to spread a startup ecosystem on par with the greater Seoul area to the regions," adding, "We will build a regional startup environment where talent, capital, and technology converge."