10 Regional Hubs to Be Designated as 'Startup Cities'

The government has unveiled a blueprint to designate ten regional “Startup Cities” and elevate local startup ecosystems to a global level. A Startup City refers to a city where local startup resources-such as innovative talent from regional universities and research institutes, and public data and demonstration infrastructure held by public institutions-are organically integrated with government startup support tools, resulting in a vibrant entrepreneurial environment within the city.

On April 24, the Ministry of SMEs and Startups, together with related ministries, announced the “Startup City Development Project” at the National Startup Era Strategy Meeting presided over by Deputy Prime Minister for Economic Affairs Koo Yuncheol. Currently, Korea’s startup ecosystem in major regional cities lags behind due to the structural concentration of key resources-including investment, talent, and infrastructure-in the Seoul metropolitan area. To remedy this, the government will actively pursue this project to ease the concentration of startup resources in the capital and transition to a “multi-core startup ecosystem” centered around regional hubs. The goal is to have five Startup Cities ranked within the world’s top 100 global startup ecosystems by 2030.

The Ministry of SMEs and Startups will first designate Daejeon, Daegu, Gwangju, and Ulsan-regions home to the four major Institutes of Science and Technology, and equipped with excellent talent nurturing infrastructure-as Startup Cities to establish leading models. In these four regions, the government plans to foster core talent and significantly relax regulations and academic policies that hinder faculty and student entrepreneurship, thereby promoting university-based startups.

Seong-sook Han, Minister of SMEs and Startups

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After these four Startup Cities are selected, six additional cities will be designated in connection with their regional key industries (such as venture finance, energy, and local specialties). For these six regions, local governments will develop tailored detailed strategies, and the central government will focus on providing startup support capabilities, including budget and programs, in a “local government-led, central government-supported” approach. Additionally, in partnership with regional public institutions, the plan is to promote data-driven, demonstration-based technology startups using public data and demonstration infrastructure.

A new business package support program, directly planned by local governments, will be introduced to ensure links with region-specific specialized industries. In particular, companies relocating to these regions will receive incentives, such as reduced corporate contributions. Support for R&D and the TIPS program (Tech Incubator Program for Startup Korea) dedicated to startups will also be expanded. Within Startup Cities, regulatory sandbox zones for new technologies will be designated to eliminate growth barriers. Furthermore, starting with the creation of a 450 billion won “Regional Growth Fund (mother fund)” this year, the government plans to establish a total of 3.5 trillion won in sub-funds by 2030. Reflecting local government demand, the government will also expand residential and startup spaces for entrepreneurs, such as shared dormitories, office, and networking spaces, utilizing national and public assets in the regions.

For comprehensive support, a “Startup City Task Force,” consisting of local innovation agencies, will be formed through public-private cooperation. In addition, the Angel Investment Hub and Korea Venture Investment regional offices will be greatly expanded to enhance investment accessibility, and regional startup events integrating local innovators will be held in Startup Cities to facilitate technology and commercialization exchanges.

Regions designated as Startup Cities will begin receiving full-scale fiscal support from the second half of this year. The Ministry of SMEs and Startups will review annual progress and adjust the scope of tasks and support accordingly, continuing assistance through 2030. Next month, the ministry plans to hold a “Startup City Strategy Presentation” with participation from local governments and the four major Institutes of Science and Technology. At this event, the direction for building Startup Cities-reflecting the industrial and technological characteristics of each city-will be announced.

Seong-sook Han, Minister of SMEs and Startups, stated, “The Startup City Development Project is a plan to spread a startup ecosystem on par with the Seoul metropolitan area to regional hubs,” and added, “This is a policy that goes beyond simply creating spaces: it combines talent, capital, and technology to generate new innovation and creates an environment where entrepreneurs can settle locally, structurally transforming the regional startup ecosystem.”

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