Seocho-gu and The Freecon Sign Business Agreement, First Step to Attract 1,000 Startups

Business Agreement Signed to Establish Excellent Enterprise Center for AI
Collaboration with The Precon to Build Infrastructure and Attract Startups in Yangjae AI Special Zone

Seocho-gu, Seoul (Mayor Jeon Seong-su) announced on the 9th that it signed a business agreement with The Precon Co., Ltd. on the 8th to establish an excellent enterprise center for a sustainable artificial intelligence (AI) ecosystem within the Yangjae AI Special Zone.

Seocho-gu and The Freecon signed a business agreement on the 8th regarding the establishment of an Excellent Enterprise Center. Photo by Jeon Seong-su, right, Mayor of Seocho-gu, and Yoon Dae-jung, left, CEO of The Freecon. Provided by Seocho-gu.

Since the Yangjae and Umyeon-dong areas were designated as the nation’s first AI special zone last November, the district has been actively promoting the AI industry ecosystem and administrative innovation centered around this area this year.

The Precon, which signed the agreement on this day, is the initial implementer and overall project manager (PM) of the Gangnam Data Center and the operator of the AI office building. It will cooperate with Seocho-gu for the mutual development of the AI special zone. Through this business agreement, the district plans to join forces with The Precon Co., Ltd. to build infrastructure for a stable working environment, discuss facility arrangements, and improve various welfare conditions for companies.

The excellent enterprise center will utilize the 9th-floor office building of the Gangnam Data Center. The district plans to complete its establishment by the end of this year and attract about 40 AI startups with 20 to 40 employees each.

Resident companies will be provided with optimal conditions to focus solely on their business through affordable rent and regulatory exemptions related to patent law and immigration control law. Additionally, they can expect synergy effects through networking and technological cooperation with nearby national AI research hubs, Seoul AI Hub, KAIST AI Graduate School, and large corporate research institutes.

Moreover, the district will focus on creating a convenient environment for AI startups to operate by supporting a startup fund of 110 billion KRW over five years and high-performance computing infrastructure. Through this, it aims to attract about 1,000 startups within the special zone, in addition to the 500 AI and information and communication technology (ICT) companies already located in the Yangjae area.

Yoon Dae-jung, CEO of The Precon Co., Ltd., who participated in the agreement, said, "We will do our best to create an environment where AI companies can continuously grow through multifaceted cooperation with Seocho-gu and contribute to the activation of the AI industry within the special zone."

Mayor Jeon Seong-su emphasized, "This business agreement will greatly help attract startups to the AI special zone. We will continue to leap forward as a future advanced city leading the AI industry through infrastructure development, focused investment, and talent cultivation centered on the Yangjae AI special zone."

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