Daejeon Startup Companies Increase by 26% Over 5 Years... 5-Year Survival Rate at 29.7%

[Asia Economy (Daejeon) Reporter Jeong Il-woong] The growth rate of startup companies in the Daejeon area is found to be the highest among non-metropolitan areas. However, the 5-year survival rate of these companies is lower than the national average, indicating a need for improvement.

According to Daejeon City and the Daejeon Sejong Research Institute on the 13th, the number of companies founded in Daejeon increased by 26.6%, from 31,063 in 2016 to 39,330 last year. This is the highest growth rate among non-metropolitan areas excluding Seoul, Gyeonggi, and Incheon.

In particular, the number of startups in technology-based industries such as manufacturing and knowledge-based services rose by 13.3%, from 4,711 in 2016 to 5,336 last year. The number of technology-based startups per 1,000 people also increased by 17.1% during the same period.

The city invested a budget of 10 billion KRW (7.1 billion KRW from city funds) last year to support the establishment of 403 companies.

Based on this, supported companies achieved results including the creation of 1,016 jobs, sales of 173.4 billion KRW, exports worth 5.4 billion KRW, investment attraction of 108.4 billion KRW, and securing 537 intellectual property rights.

However, there is a need for improvement in the survival rate of startups. For example, the 1-year survival rate of local startups was 63.8%, slightly above the national average of 63.7%, but the 5-year survival rate was 29.7%, lower than the national average of 31.2%.

Ko Hyun-duk, Director of the Job Economy Bureau of Daejeon City, said, “This year, the city conducted a performance analysis of startup support projects for the first time, and based on this, we plan to carry out continuous monitoring to establish guidelines for startup support policies using accumulated data.”

He added, “Above all, we will strive to identify the effects of the startup support policies promoted by the city, as well as the outcomes and issues related to budget investment, to establish an operational system for support projects that satisfy startup companies.”

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