Seoul Aims to Become a Top 5 Global Startup City

Seoul plans to help daring individuals with innovative ideas and techniques to establish businesses, aid in continuing transfusion of new businesses, and help innovative businesses that are started in Seoul step out onto the world stage.

To accomplish this, the city will offer mobilized support under its authority and capacity for an establishment’s whole life, which includes technical startup, early growth following establishment, and even global advancement. Seoul will focus on producing global businesses and innovative economic models to create a new growth engine to overcome a time of low growth.

The city will prioritize the fostering of 10,000 innovative individuals, which includes talented individuals in the area of specialized technology of the Fourth Industrial Revolution and foreign entrepreneurs, who will take the lead in technical establishments and double the residential spaces of technical startups in AI and bio throughout Seoul to 2,200 to largely expand the new technology startup infrastructure.

Based on such infrastructure, Seoul will aid businesses that succeed in their establishments to take a step further as a global business. Seoul will boldly invest in startups and early businesses experiencing difficulties in attracting private investors and offer a new total service from business evaluation to product design, prototype production, and connection with manufacturers so that innovative ideas can reach a manufacturable state in 180 days.

With such strategically concentrated investments and support, Seoul presented seven projects with the announcement of evolving Seoul into becoming one of the top five startup cities around the globe.

The aims is to invest approximately 1.9 trillion KRW (960 billion for municipal expenses, 680 billion for national expenses, 300 billion for private investments) in four years by 2022, expand the current seven unicorn companies (venture businesses with over 1 trillion KRW in valued business funds) to fifteen, and increase the weight of venture business sales, compared to total enterprise sales, to 7% (which was 3% as of 2017).

The seven projects are: ① ‘Global Talented Individual Pipeline’ for fostering 10,000 talented individuals in technology, ② ‘Tech Space 1000,’ which will increase the number of technical startup spaces to 1,000, ③ ‘Strategic Growth Investment’ with funding support for 3,000 startups according to growth stage, ④ ‘Growth Promotion Platform’ that offers private leadership and public support, ⑤ ‘Productization 180’ for speedy commercialization of ideas, ⑥ ‘Testbed City Seoul,’ which demonstrates and pioneers a market for innovative, technological products, and ⑦ ‘Global Market,’ which will help 160 promising startups advance into overseas markets.

< ① ‘Global Talented Individual Pipeline’ for fostering 10,000 talented individuals in technology>
First, 6,400 individuals (1,600 annually) who specialize in technology of the Fourth Industrial Revolution will be fostered based on six new industrial hubs in Hongneung (bio), Mapo (FinTech, blockchain), Gaepo and Yangjae (AI, big data, etc.).

This project will also concentrate on attracting and fostering major global (foreigner) talents with aspirations in working at technological startups. The process of ‘technological startup preparation visas’ will be simplified for the issuance of visas within one week through cooperation with the Ministry of Justice, and a fast track program will be established for instant issuance of the ‘technological startup visa’ in case that a startup attracts over 100 million KRW in investment from VC (venture capital) or AC (accelerators).

< ② ‘Tech Space 1000’ for an increase in the number of technical startup spaces to 1,000>
A new residential space will be created for over 1,000 innovative businesses around new business hubs in Yangjae (AI), Hongneung (bio, medical treatment), and more. The number of residential businesses will be doubled from the current 1,043 to 2,200 in addition to a 2.4 increase in area from 200,000㎡ to 480,000㎡.
< ③ ‘Strategic Growth Investment’ with fund support for 3,000 startups according to growth stage>
Third, the city will strengthen early investment in the business start-up and productization stages, which are steps that determine the success or failure of a startup, to help these young companies successfully walk through their own ‘Death Valley’ and grow into unicorn companies.

< ④ ‘Growth Promotion Platform’ that offers private leadership and public support>
Fourth, Seoul will launch the ‘Startup Platform’ through which publicly-led startups will be open to private businesses and venture capitalists with expertise for private leadership and public support. In the second half of this year, the ‘Seoul Startup Hub’ will be open to global investors and accelerators who will initiate startup selection, investment attraction, global advancement, and the startup incubation program with plans to expand to Yangjae and Hongneung starting next year.
‘Private cooperative startup spaces and networks’ will also be expanded, which is the provision of spaces by private businesses while rent is provided by the city in support of startup expositions and programs like startup competitions.

< ⑤ ‘Productization 180 Project’ for speedy commercialization of ideas into prototypes in 180 days >
Fifth, the ‘Productization 180 Project’ that offers comprehensive support for completion of an innovative business idea into a prototype within 180 days will be put into operation.

This is a method of operating a comprehensive window that unifies product manufacturing support that was once done at different prototype production centers, evaluates feasibility of new ideas (inspection for duplication of similar or same products, analysis and estimation of market demand, calculation of production costs), and goes through a suitable product design phase to produce new products at the technical Makerspace. In the product mass production step, a cooperative system will be constructed with domestic and overseas manufacturers for connections with optimal manufacturing enterprises.

< ⑥ ‘Testbed City Seoul,’ which demonstrates and pioneers a market for innovative, technological products >
Sixth, Seoul will become a testbed for innovative products for startups that struggle with the lack of outlets and opportunity for demonstrations after successful commercialization of innovative technologies. Opportunities for demonstrations will be offered to 500 innovative businesses by 2023 in addition to aid in technology development, commercialization, and marketing. Seoul will offer outlets for verified innovative products and services through public purchasing.

< ⑦ ‘Global Market,’ which will help 160 promising startups advance into overseas markets >
Seventh, Seoul will offer strategic support for advancement into foreign markets (Going-Global) in order for excellent, innovative startups in Seoul can pioneer the way for job creation and economic growth.

State of Seoul Startup Support Facilities (as of March 2019)

• Total of 44 facilities
  • ○ Startup nurturing institutions: 27
    • – Provision of startup residential space and education, commercialization support programs

      programs

      Institution	Location	Target	Note
      Seoul Startup Hub	21, Baekbeom-ro 31-gil	Preparatory, early, growing business All technology-based startups	Residents: 450 Scale: 23,659㎡ Opened: June 2017
      Seongsu IT Center	37, Seongsui-ro 22-gil	Preparatory, early, growing business IT, IoT	Residents: 33 Scale: 9,909㎡ Opened: July 2011
      Seoul Global Startup Center	109, Cheongpa-ro	Preparatory, early business Foreign residents, international students	Residents: 46 Scale: 2,737㎡ Opened: August 2016
      Seoul Startup Growth Center	5, Hwarang-ro 14-gil	Growing business High-tech industry (bio, IT, etc.)	Residents: 20 Scale: 1,166㎡ Opened: September 2012
      Seoul Startup Didimteo	27, Dongil-ro 174-gil	reparatory, early business All technology-based startups	Residents: 30 Scale: 2,547㎡ Opened: May 2014
      Youth Startup Dream Site	11-3, Yonsei-ro 2da-gil	Preparatory, early business	Residents: 8 Scale: 390㎡ Opened: November 2017
      Seoul App Business Center	31, Maebongsan-ro	Preparatory, early business Internet, mobile app business	Residents: 35 Scale: 1,224㎡ Opened: April 2016
      Seoul Global Center	38, Jong-ro	Preparatory, early business Foreign residents	Residents: 13 Scale: 711㎡ Opened: January 2008
      Gangnam Global Business Center	513, Yeongdong-daero	Preparatory, early business Foreign residents	Residents: 3 Scale: 122㎡ Opened: May 2010
      Yangjae Innovation Hub	114, Taebong-ro	Preparatory, early, growing business AI, deep-learning business	Residents: 12 Scale: 2,900㎡ Opened: December 2017
      Fintech Lab Seoul	21, Baekbeom-ro 31-gil	Preparatory, early, growing business Finance, FinTech	Residents: 27 Scale: 592㎡ Opened: April 2018
      Seoul Biohub	117-3, Hoegi-ro	Preparatory, early, growing business Bio, medical treatment	Residents: 5 Scale: 3,729㎡ Opened: October 2017
      Seoul Food Startup Center	932, Yangjae-daero	Preparatory, early, growing business Agri-food industry	Residents: 22 Scale: 1,547㎡ Opened: December 2016
      Seoul High-Tech Venture Center	29, Gonghang-daero 61-gil	Preparatory, early, growing business All technology-based startups	Residents: 39 Scale: 9,270㎡ Opened: September 1995
      DMC High Tech Industrial Complex	37, Maebongsan-ro	Early, growing business IT, knowledge industry, R&D	Residents: 33 Scale: 77,190㎡ Opened: October 2008
      A-Center/R&D Center	37, Maebongsan-ro	Preparatory, early, growing business All technology-based startups	Residents: 17 Scale: 1,086㎡ Opened: September 2016
      A Center Gangnam Branch	157-27, Samseong-dong	Early, growing business	Residents: 10 Scale: 1,369㎡ Opened: March 2018
      Seoul Game Contents Center	330, Seongam-ro	Preparatory, early, growing business Gaming business	Residents: 18 Scale: 1,978㎡ Opened: December 2009
      Seoul Animation Center	126, Sapo-ro	Preparatory, early, growing business Animation business	Residents: 9 Scale: 7,080㎡ Opened: May 1999
      DMC Startup Center	330, Seongam-ro	Preparatory, early business Design business	Residents: 45 Scale: 3,531㎡ Opened: October 2008
      Seoul Fashion Creative Studio	43, Eulji-ro 45-gil	Preparatory, early, growing business Fashion design	Residents: 34 Scale: 2,330㎡ Opened: December 2009
      Women Enterprise Supporting Center	36, Achasan-ro 30-gil	Preparatory, early business Female business	Residents: 30 Scale: 388㎡ Opened: April 2009
      Women Enterprise Supporting Center	Within Dogok Subway Station	Preparatory, early business Female business	Residents: 15 Scale: 743㎡ Opened: April 2013
      Women Enterprise Supporting Center	23, Doksan-ro 50-gil	Preparatory, early business Female business	Residents: 18 Scale: 1,200㎡ Opened: March 2002
      Women Enterprise Supporting Center	50, Dongil-ro 207-gil	Preparatory, early business Female business	Residents: 22 Scale: 810㎡ Opened: October 2011
      Women Enterprise Supporting Center	17, Tojeong-ro 35-gil	Preparatory, early business Female business	Residents: 17 Scale: 362㎡ Opened: January 2011
      Seoul Woman Craft Center	27, Dongil-ro 174-gil	Preparatory, early business Female business	Residents: 52 Scale: 5,723㎡ Opened: May 2017

  • ○ Startup information exchange space: 10
    • – Main functions: startup counseling, personal network construction, startup information and education

      ain functions

      Institution	Location	Note
      Start-up Cafe Soongsil Univ. Branch	Within Soongsil Univ. Subway Station	Scale: 116㎡ Opened: January 2016
      Start-up Café Hongdae Branch	50, Yonsei-ro, pedestrian underpass	Scale: 223㎡ Opened: March 2016
      Start-up Café Sinchon Branch	122-6 Dongsung-gil	Scale: 132㎡ Opened: July 2016
      Start-up Café Daehak-ro Branch	77, World Cup buk-ro 4-gil	Scale: 332㎡ Opened: March 2017
      Start-up Café Chungmu-ro Branch	8-8, Chungmuro 5(o)-ga	Scale: 297㎡ Opened: April 2018
      Start-up Café Bulgwang Branch	9-31, Daejo-dong	Scale: 188㎡ Opened: August 2018
      Start-up Café Cheonho Branch	1057, Cheonho-daero, 2F	Scale: 315㎡ Opened: September 2018
      Dongdaemun Global Center	146, Mareunnae-ro	Scale: 230㎡ Opened: October 2015
      Fintech Academy	Korea Institute of Financial Investment, 6F	Scale: 1,447㎡ Opened: February 21, 2018
      Seobu Women’s Growth Center	371, Nambusunhwan-ro	Scale: 308㎡ Opened: December 2002

  • ○ Prototype production center: 7
    • – Main function: Provision of equipment and space for prototype production, education, product manufacturing service

      Main function

      Institution	Location	Note
      Digital Blacksmith	Yongsan-gu (83, Cheongpa-ro, Wonhyo Mall 2F)	Scale: 576㎡ Opened: May 2016
      Seongsu Maker Space (in Seongsu IT Center)	Seongdong-gu (37, Seongsui-ro 22-gil)	Scale: 328㎡ Opened: September 2015
      Sang Sang Factory (In Gaepo Digital Innovation Park)	Gangnam-gu (416, Gaepo-ro)	Scale: 685㎡ Opened: November 2016
      Seongbuk Prototype Factory	Seongbuk-gu (227-199, 200, Jeongneung-dong)	Scale: 87㎡ Opened: May 2017
      Maker Park (in Seoul Innovation Park)	Eunpyeong-gu (684, Tongil-ro)	Scale: 661㎡ Opened: June 2016
      IoT Incubation Center	Guro-gu (72, Digital-ro 26-gil)	Scale: 1,018㎡ Opened: February 2017
      Sewoon Makers’ Cube	Jongno-gu (159, Cheonggyecheon-ro)	Scale: 716㎡ Opened: September 2017