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Government plans to increase, diversify Korea's startup ecosystems to promote balanced growth

Published: 24 Apr. 2026, 12:57

Finance Minister Koo Yun-cheol speaks during an interministerial meeting held at the central government complex in Seoul on April 23. [NEWS1]

The government will designate 10 cities to serve as major hubs for startup ecosystems by next year in a bid to promote balanced regional growth and create more jobs for young people, the Ministry of Finance and Economy said Friday.

The state authority will first designate four cities that house the country's major science institutes — Daejeon, Daegu, Gwangju and UIsan — as startup hubs this year, and name six more cities outside of the greater Seoul area with such potential next year, according to the Finance Ministry. The initiative was announced at a meeting on the economy and strategy on boosting startup ecosystems.

The ministry said the initiative aims to help promote balanced regional growth as the country's startup infrastructure has been mainly focused in Seoul, while other regions are suffering an outflow of population due to the lack of industrial infrastructure.

Korea ranks 20th worldwide in terms of startup ecosystem competitiveness, with massive investment in research and development (R&D) projects and active patent applications. However, it only has three cities listed among the top 500 startup cities, the ministry said, citing data from global startup ecosystem research platform StartupBlink.

The United States has 137 cities making the list, while Britain, Germany, China and Japan have 34, 27, 26 and six cities on the list, respectively.

Through the initiative, the government aims to foster five cities that can make the top 100 global startup list by 2030, the ministry said.

To this end, the government plans to help the cities serve as education hubs for young entrepreneurs and develop their own specialized areas of industry — for example, Daegu as a hub for robotics startups, Gwangju for AI and smart energy and Ulsan for future mobility.

The government will also devise a comprehensive support package for the creation and growth of startups in the areas, comprising R&D, investment and networking support, as well as streamlining regulations, the ministry explained.

The ministry added that it will also help rural regions develop businesses utilizing their regional resources in culture and tourism to stimulate the local economy, while providing benefits to companies outside of the Seoul metropolitan area when they make bids for public procurement projects.

“Building on the golden window of opportunity created by the semiconductor boom, the government will work to strengthen the foundations for our economy to reemerge as a global leader by advancing proactive industrial innovation and promoting startups,” Finance Minister Koo Yun-cheol said.

Koo noted that the government also plans to announce a strategy aimed at boosting the tourism industry and environmentally friendly consumption next week to address concerns over weakening consumer sentiment, and the so-called new deal strategy aimed at providing more work experience to young people.

Yonhap