Building a Startup Ecosystem to Support Global Expansion of Startups in Hongdae and Busan

Ministry of SMEs and Startups Announces Plan to Establish 'Korean-style Station F'

Global startup hubs will be established in two locations: near Hongdae in Seoul and at Busan North Port.

On the 25th, the Ministry of SMEs and Startups announced that it had selected two sites near Hongdae in Seoul and around Busan North Port as locations for the Korean-style Station F. The Korean-style Station F is a global startup hub announced last year in the 'Startup Korea Measures.' The global startup hubs will be created in one location each in the metropolitan area and non-metropolitan areas to foster deep tech startups, advance the global startup ecosystem, and build an open startup ecosystem centered on local regions.

Station F is the world's largest startup campus located in Paris, France. It provides office space and acceleration programs to over 1,000 startups.

The global startup hubs will break away from the previously segmented operation of startup infrastructure and will be built as twin hubs that grow together in both the metropolitan area and local regions.

Through the establishment of the global startup hubs, the Ministry of SMEs and Startups plans to gather deep tech companies, investors, and support organizations scattered across various regions into one place and provide customized support to actively nurture deep tech ventures and startups. Additionally, it aims to reduce the gap in the startup ecosystem between the metropolitan area and local regions by enabling direct global expansion from local areas without passing through the metropolitan area.

A bird's-eye view of the Hongdae area of the 'Korean-style Station F'. (Photo by Ministry of SMEs and Startups)

Hongdae Area with High Concentration of Technology Startups

The global startup hub in the metropolitan area will be established near Hongik University. After exploring about 100 sites and undergoing evaluation by a specialized research institute (KDI), the Ministry of SMEs and Startups finally selected the Hongdae area in Mapo-gu, Seoul.

The Hongdae area is a region with a high concentration of technology startups and is supported by nearby universities such as Yonsei University, Ewha Womans University, Sogang University, and Hongik University. It is also the area with the highest number of foreign students residing, making it advantageous for supplying and utilizing global talent. With excellent accessibility to subway stations, train stations, and airports, public transportation is convenient, and it has a global commercial district, making it an ideal location to attract both domestic and overseas startups.

The metropolitan global startup hub will be developed as the tentatively named ‘K-Deep Tech Town’ to focus on nurturing deep tech ventures and startups, which are gaining importance in the recent tech-centered economy. Accordingly, it will attract global big tech companies, specialized VCs, ACs, and other innovation entities, as well as domestic and international deep tech ventures and startups to the hub, realizing one of Asia’s top-level deep tech societies. Furthermore, a unique Korean entertainment technology (Entertech) support program will be launched to attempt the fusion of K-content and deep tech technology.

The metropolitan global startup hub is scheduled to begin design work by the end of this year, undergo remodeling in 2025, and open in the first half of 2026.

A bird's-eye view of Busan North Port, the 'Korean-style Station F.' (Photo by Ministry of SMEs and Startups)

Busan with Global Growth Potential

The global startup hub in the non-metropolitan area will be established in an abandoned warehouse in Busan North Port. In March, a total of seven metropolitan local governments applied through a public contest, and after evaluation by a panel of startup, urban, and architectural experts, Busan North Port was finally selected.

The abandoned warehouse in Busan North Port, which was used as a bonded warehouse and other purposes since 1978, symbolizes the export-driven industrialization of the past and is planned to be transformed into a regional startup landmark by 2026.

Among non-metropolitan cities, Busan has a highly growing startup ecosystem, and the area near North Port has commercial, cultural, and park infrastructure as well as excellent transportation accessibility necessary for attracting young and innovative startups, making it a region with sufficient growth potential as a glocal startup hub.

In addition to focused investment in regional startups in strategic industries such as digital finance and smart maritime using the Busan Future Growth Venture Fund, the hub plans to actively attract startups from the metropolitan area and overseas based on region-specific programs such as open innovation linked with local large and medium-sized enterprises like Lotte, and work-entertainment programs that combine work and play.

Both global startup hubs will operate as connected hubs accessible to each other through joint memberships and joint programs. This will allow local regions to enjoy metropolitan infrastructure and investment attraction opportunities, and metropolitan startups considering relocation to local areas will be encouraged to relocate without hesitation through the Busan hub.

Minister Oh Young-joo of the Ministry of SMEs and Startups stated, “In response to the global deep tech technology hegemony competition, we will proceed with innovative design and rapid establishment so that about 400 deep tech ventures and startups can move into the Korean-style Station F by 2027,” adding, “By simultaneously establishing hubs in the metropolitan and non-metropolitan areas, we will ultimately elevate our startup ecosystem to become Asia’s number one startup ecosystem.”

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