54 Companies Selected as 'Regional Innovation Leading Enterprises'

Up to 2 Billion KRW in Customized Support for Companies Including R&D, Market Access, and Workforce for Up to 6 Years

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) announced on the 2nd that it has selected 54 'Regional Innovation Leading Companies' to create jobs and drive the local economy in collaboration with 14 non-capital region cities and provinces.

The Regional Innovation Leading Companies project was promoted under the "Act on the Promotion of Regional SMEs and Innovation" to discover promising companies with innovative capabilities and growth potential and nurture them as anchor companies that lead the main industry ecosystem and local economy of the region. This project, jointly promoted by the Ministry and 14 cities and provinces, aims to discover 100 companies by the end of this year, selecting 54 companies first and planning to select an additional 46 companies in the second half of the year.

The 54 companies selected this time have an average sales revenue of 17.3 billion KRW, a research and development (R&D) investment ratio of 5.6% relative to sales, and an employment growth rate of 6.2%. Based on comprehensive reviews by related industry-academia-research experts, they are evaluated to have high growth potential and significant contributions to the local economy. By industry, 29% (16 companies) are in machinery and materials, 24% (13 companies) in bio and medical, and 17% (9 companies) in information and communication. They operate in 34 (70.8%) of the 48 regional key industries, including biohealth, advanced aviation, future energy, and green mobility.

In addition to the 54 leading companies driving the project, a total of 205 industry-academia-research entities, including 160 SMEs, 26 universities, and 18 research institutes located in the region, will participate together to jointly create the ecosystem of the region's main industries.

The Ministry and the 14 non-capital region cities and provinces plan to provide tailored and close support to the Regional Innovation Leading Companies over the next six years to nurture them into representative companies leading the local economy. Selected companies will receive up to 2 billion KRW over six years for technology development funds. A menu-style regional autonomy program covering sales channels, workforce, funding, and investment will also be provided.

In the first year of this year, 50 million KRW will be provided for establishing collaboration strategies and planning technology development projects, along with initial support services necessary for company growth such as expanded policy fund limits and reduced guarantee fees. From next year, in addition to full-scale technology development support, autonomous programs tailored to the growth of leading companies, such as preferential regional investment subsidies and test equipment support, will be prepared and provided by each of the 14 non-capital region cities and provinces.

Kim Seong-seop, Director of Regional Enterprise Policy at the Ministry, said, "The Regional Innovation Leading Companies, selected proactively by the 14 non-capital region cities and provinces, will become role models of regional innovation and growth leading the local economy," adding, "The Ministry will accelerate the nurturing of leading companies and cooperate with local governments to carry out multifaceted support activities to achieve early results in creating ecosystems for regional key industries."

Status of Key Industries in 14 Non-Capital Region Cities and Provinces

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