South Korea to pick six more 'startup cities' in regional funding programme
In short
South Korea's Ministry of SMEs and Startups said on 22 October it will select six more 'startup cities' under its Startup City Development Project. Applications are open until the end of November, and final selection is planned for January 2027. Each selected city is to receive 15 billion won a year until 2030, according to Asia Economy and Newsis.
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South Korea's Ministry of SMEs and Startups said on 22 October that it will select six more cities under its Startup City Development Project. Newsis reported that the call for applications starts on the 23rd. Local governments must submit startup city strategies and business plans, based on local startup conditions, specialised industries and innovation resources, by the end of November. [ 1 , 2 , 3 ]
The project connects regional resources such as talent, technology and capital, and builds on local specialised industries so that startups can found, grow and settle in a region. Asia Economy said the project has been under way since this year. In the first half of this year, the ministry chose Daejeon, Daegu, Gwangju and Ulsan as pilot models, focusing on regions with science and technology institutes. Asia Economy and Yonhap said support for those four, including commercialisation funds, startup education, demonstration and open innovation, has run since August. [ 1 , 2 , 3 ]
Under the new call, the ministry plans to let local governments design their own priority fields and growth strategies, in order to find a variety of region-led models. Yonhap reported that the call is open to the 10 non-capital-area metropolitan governments other than the existing four. [ 1 , 2 , 3 ]
Asia Economy and Newsis said each selected city is to receive a budget of 15 billion won a year for four years until 2030, covering commercialisation funds and growth support programmes. Yonhap put the total at 60 billion won from next year to 2030. The support is to be linked to government programmes including TIPS, regional growth funds and angel investment hubs. [ 1 , 2 , 3 ]
Asia Economy and Newsis also said a promotion body, called the startup city promotion group, is to be formed around the local government. It is to include universities, research institutes, creative economy innovation centres, investment institutions and local companies. [ 1 , 2 ]
Asia Economy said the ministry will carry out a document review and an on-site evaluation. The document review will look at regional startup ecosystem capacity and strategy, and evaluators will visit regions to check the local government's commitment, the participation of universities and research institutes, and conditions for startup hubs. Evaluation and final deliberation are to start at the end of this year, with the six new cities chosen in January 2027, after which the country would have 10 startup cities. [ 1 , 2 , 3 ]
Minister Lee So-young (이소영) said the call would connect regions' strengths with startups and create new regional growth bases where startups, talent and investment gather. [ 1 , 2 , 3 ]
Why it matters
Once the six are chosen, the country is to have 10 startup cities. The ministry says it wants local governments to design their own focus areas and growth strategies, which would lead to a range of regional models.
Key facts
- The Ministry of SMEs and Startups said on 22 October it will select six additional cities under the Startup City Development Project. [ 1 , 2 , 3 ]
- Four cities, Daejeon, Daegu, Gwangju and Ulsan, were chosen in the first half of this year as pilot models, in regions with science and technology institutes. [ 1 , 2 , 3 ]
- Local governments must submit their strategies and business plans by the end of November. [ 1 , 2 , 3 ]
- Document review, on-site evaluation and final deliberation are to follow from the end of this year, with the six new cities selected in January 2027. [ 1 , 2 , 3 ]
- Asia Economy and Newsis say each selected city is to get about 15 billion won a year for four years until 2030; Yonhap puts the total at 60 billion won. [ 1 , 2 , 3 ]
- The support is to be linked to programmes such as TIPS, regional growth funds and angel investment hubs. [ 1 , 2 , 3 ]
- With the six additions, the country would have 10 startup cities. [ 1 , 2 , 3 ]
Confirmed by several sources
- The ministry announced on 22 October that it will select six more startup cities, with applications taken until the end of November and final selection in January 2027. [ 1 , 2 , 3 ]
- Daejeon, Daegu, Gwangju and Ulsan were selected in the first half of this year as the first four startup city models. [ 1 , 2 , 3 ]
- Selected cities are to receive support for four years until 2030 and links to TIPS, regional growth funds and angel investment hubs. [ 1 , 2 , 3 ]
- Minister Lee So-young (이소영) said the call would connect regional strengths with startups and create new regional growth bases where startups, talent and investment gather. [ 1 , 2 , 3 ]
Still unclear
- Date the call for applications opens Newsis says the call starts on the 23rd; the other two documents give no start date.
- Which local governments may apply Only Yonhap says the call is open to the 10 non-capital-area metropolitan governments other than the existing four.
- How the funding is described Asia Economy and Newsis give 15 billion won a year for four years until 2030, while Yonhap gives a total of 60 billion won from next year to 2030; the documents do not say whether these are the same sum per city or in total.