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Experts call for Korea's 'innovative square mile' at startup symposium

Published: 10 Sep. 2025, 19:36 Updated: 11 Sep. 2025, 08:24

Johannes Fruehauf, founder and chairman of LabCentral, delivers a keynote speech at the Startup Nation Korea 2025 international symposium at KAIST in Daejeon on Sept. 10. The event was co-hosted by the JoongAng Ilbo, Seoul National University and KAIST. [KIM SUNG-TAE]

Korea already has all the infrastructure needed for basic research, development and investment. The challenge lies in failing to link those assets into a new growth engine of innovation-driven startups, said Johannes Fruehauf, chairman of biotech incubator LabCentral, on Wednesday.

Speaking at the 2025 Startup Nation Korea international symposium held at KAIST in Daejeon, Fruehauf shared how Boston's Kendall Square grew into one of the world's leading biotech hubs.

Kendall Square has earned the nickname “the most innovative square mile on the planet” because, within a 15-minute walk, researchers, entrepreneurs and investors can connect across the entire innovation ecosystem. The cluster brings together top universities such as MIT and Harvard, global firms including Google and Moderna, and more than 1,000 biotech startups that freely network and collaborate.

Fruehauf said the key to that success is close cooperation among researchers, companies and investors in a compact, organic cycle. He explained that LabCentral creates spaces where scientists can casually meet potential investors or partners over coffee.

He stressed that Korea must strengthen technology transfer offices (TLOs) to successfully commercialize research. Researchers in the country often lack business experience or face bureaucratic barriers to starting companies, he said, adding that TLOs can serve as the link between intellectual property and the market.

Korea’s R&D paradox

Korea invests nearly 5 percent of its gross domestic product in research and development (R&D), one of the highest rates in the world. Yet little of that spending translates into commercialization or new businesses. The Ministry of Trade, Industry and Energy estimates that only about 30 percent of government-funded research results are transferred as technologies, while just 2 to 3 percent of all technologies succeed in reaching the market.

The government recently set next year’s R&D budget at a record 35.3 trillion won ($25.4 billion), but critics warn that without stronger links to entrepreneurship, the investment risks merely funding “research for research’s sake.”

At the forum, co-hosted by Seoul National University (SNU), KAIST and the JoongAng Ilbo under the theme "Path to an Innovative Startup Cluster," participants discussed various ways to overcome Korea’s so-called R&D paradox.

Lessons from China’s Zhongguancun

Liu Deying, dean of the School of Innovation and Entrepreneurship at Peking University, delivers a keynote speech at the Startup Nation Korea 2025 international symposium at KAIST in Daejeon on Sept. 10. [KIM SUNG-TAE]

Liu Deying, dean of the School of Innovation and Entrepreneurship at Peking University, said universities must factor in market needs at the R&D stage.

If researchers think only about supplying results, the outcome ends with academic papers rather than businesses, said the researcher, who played a key role in revitalizing Zhongguancun, China’s leading innovation cluster.

Peking University, he added, trains researchers to consider private sector and consumer demand from the start.

Beijing hosts 115 of China’s 409 unicorn companies, nearly 30 percent of the national total, according to this year’s annual Zhongguancun report.

Building Korea's 'one square mile'

Korea has fostered its own clusters, including Seoul’s Hongneung area, centered on the Korea Institute of Science and Technology (KIST), and Daejeon’s Daedeok district, which brings together KAIST and more than 30 universities and government-funded research institutes. These hubs have produced many of Korea’s deep-tech firms, but observers say they still lack the global competitiveness of Boston or Zhongguancun.

KIST President Oh Sang-rok acknowledged that past efforts leaned heavily on hardware like infrastructure.

“To maximize the value of clusters, Korea must also advance the software side, fostering informal networking, free knowledge sharing and a culture that tolerates failure,” he said.

Kangwon National University Prof. Lee Ji-hoon added that Korea needs a unified platform to connect public R&D results with businesses.

“A one-stop system that handles registration, evaluation, transfer and investment for public technologies would remove the structural bottlenecks in commercialization,” Lee argued.

Government and academia call for joint effort

Participants, including awardees and presenters, pose for a group photo after the awards ceremony during the Startup Nation Korea 2025 international symposium at KAIST in Daejeon on Sept. 10. Starting from the fourth from left in the front row, National Research Council of Science and Technology Chairperson Kim Yeung-shik, KAIST President Lee Kwang-hyung, JoongAng Holdings Chairman Hong Seok-hyun, Seoul National University President Ryu Hong-lim, presidential secretary for science and technology research Lee Jou-hahn, First Vice Minister Koo Hyuk-chae and Vice Minister for SMEs and Startups Roh Yong-seok pose for a photo. [KIM KYUNG-ROK]

SNU President Ryu Hong-lim emphasized that innovation requires collaboration and persistence.

“No one can innovate alone, and innovation cannot end with a single attempt. A virtuous cycle between R&D to startups and industry can only emerge when government, businesses and universities work together,” Ryu said.

KAIST President Lee Kwang-hyung warned that Korea remains stuck in the “R&D paradox” despite its world-class research capabilities. He urged the country to “build a genuine startup innovation cluster like Boston or Zhongguancun.”

Hong Seok-hyun, chairman of JoongAng Holdings, said Korea's clusters must evolve into global centers.

“Startups armed with innovation-based technologies can thrive only when clusters integrate universities, industry and research. I envision a future where Daedeok and Hongneung stand out globally as Korea’s leading innovation clusters,” he said.

This year marked the fourth edition of the annual forum, which has grown in scale and prominence. The forum was co-sponsored by the Ministry of Science and ICT, the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups, which also served as award presenters.

President Lee Jae Myung sent a congratulatory message, delivered by his science and technology secretary, Lee Joo-han.

“The government will make R&D-led growth the compass of its economic strategy and fully support an innovation ecosystem that links research, startups and business expansion,” the message read.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KANG KWANG-WOO, EO HWAN-HEE, PARK JONG-SUH [[email protected]]

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Experts call for Korea's 'innovative square mile' at startup symposium

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