Daedeok Research Complex 'Sangjeonbyeokhae'... Number of Companies Increased 10 Times, Sales Increased 21 Times

Rapid Growth 16 Years After Special Zone Designation in 2005
Employment Numbers Average 12.6 More Than General Manufacturing Companies

A panoramic view of the Korea Aerospace Research Institute located in the heart of Daedeok Research and Development Special Zone

[Asia Economy Reporter Kim Bong-su] The Daejeon Daedeok Research and Development Special Zone has shown rapid growth since its designation as a special zone.

According to the Ministry of Science and ICT on the 28th, since the Daedeok Research Complex was designated as a 'Research and Development Special Zone' in 2005, it has become a representative innovation hub of South Korea with 52 government-funded research institutes, 44 research institutions, 34 educational institutions, 74 other public institutions, 49 non-profit organizations, and 6,782 companies (as of 2019) located there. The number of companies increased 9.8 times from 687 to 6,782, and sales surged 21 times from 2.5 trillion KRW to 54.6 trillion KRW. The number of KOSDAQ-listed companies also grew ninefold from 11 to 99.

In particular, the 6,782 businesses located here account for only 0.1% of all businesses nationwide (4,176,549), but contribute significantly to the economy, representing 0.8% of sales (54.6 trillion KRW out of 619.5 trillion KRW) and 1% of employees (229,000 out of 19,281,000).

Specifically, the average employment per company in the zone is 51.7 employees, which is 1.3 times higher than the national average of 39. This means they employ 12.6 more people on average than general companies. The average sales of small and medium enterprises in the special zone is 7.55 billion KRW, 1.5 times higher than the national average of 4.28 billion KRW. The average R&D expenditure is also 2.32 billion KRW, 1.2 times the national average of 1.92 billion KRW.

The special zone serves as a hub for science and technology development, receiving 12.5% of the nation's R&D funds (34.5% of government funds). Approximately 52,300 PhD-level researchers work here, accounting for 46.8% of the national total of 105,672.

The number of public technology transfers and public technology transfer fees account for more than 40% nationwide, indicating active commercialization using public technology.

The government is actively investing budgets this year, including 141.9 billion KRW for special zone development projects, 28.3 billion KRW for operation and infrastructure creation, and 9.5 billion KRW for technology commercialization investment. It supports company startups and growth through research institute company establishment and growth support, advanced technology company support, and accelerating programs.

As of 2019, among the 99 KOSDAQ-listed companies in the special zone, 29 (29.2%) grew based on the research institute company or advanced technology company system. Among 28 companies whose sales grew more than tenfold from 2006 to 2018, 15 (54%) succeeded due to government support such as special zone commercialization support and advanced technology company designation. Meanwhile, about 20-37% of companies in the special zone belong to new growth sectors, confirming the potential to grow as a hub for the Korean New Deal.

Choi Ki-young, Minister of Science and ICT, stated, "The Research and Development Special Zone is an essential regional innovation space for the success of the Korean New Deal and regional balanced New Deal," adding, "Since 2008, it has been promoted as a Korean-style science and technology-based innovation cluster to over 70 countries including Brazil and Indonesia, representing an excellent example of Korea."

This content was produced with the assistance of AI translation services.