SMEs ministry opens contest to add six startup cities

The Ministry of SMEs and Startups said Thursday it has opened a competition to select six more "startup cities," part of a push to build regional growth hubs where local industry, talent and capital feed new companies. Applications from 10 non-metropolitan regional governments are open until Nov. 30, with the winning six to be named in January 2027.

Each selected city will receive about 60 billion won ($45.3 million) over four years, or roughly 15 billion won ($11.3 million) a year, for programs that help startups commercialize and grow. Of that annual amount, about 11 billion won ($8.3 million) is earmarked for startup support and 4 billion won ($3.02 million) for the operating institution. The cities will also be linked to central government programs such as the TIPS startup accelerator scheme, regional growth funds and angel investment hubs.

The ministry said it launched the project this year because Korea's national and Seoul-level startup ecosystems rank among the world's best, while major provincial cities sit below 300th place. The goal is five Korean startup cities in the global top 100 by 2030. The new contest follows an earlier round that picked Daejeon, Daegu, Gwangju and Ulsan as pilot startup cities, each home to a science and technology institute that produces a steady stream of technical talent. Those four have been receiving commercialization funding, startup education, testing support and open-innovation programs since August.

Under the rules, each regional government must submit a strategy built on its own industrial base and innovation resources, and must designate a lead city and a central district and, in some cases, a partner city. Each region must also form a promotion team of at least 15 organizations, set up a dedicated unit of at least seven full-time staff at its local Center for Creative Economy and Innovation, and secure 640 million won ($482,837) in local funding, including 400 million won for relocation support and 240 million won for running an angel investment hub. The ministry will weigh the applications in two stages — a document review of the region's startup capacity and plans, followed by on-site inspections where evaluators check the local government's commitment and the participation of universities, research institutes and other local players.

"There is ample innovative potential in the regions, including excellent talent and technology at universities and research institutes, as well as specialized industries and companies," SMEs minister Lee So-young said, adding that the contest is meant to connect those strengths to startups and create regional hubs that draw companies, talent and investment.

Gangwon, North Jeolla and Jeju are among the eligible applicants, alongside North Chungcheong, South Chungcheong and Sejong, North Gyeongsang, Busan and South Gyeongsang, and South Jeolla. In the case of the proposed Gwangju-South Jeolla integrated city, applications are allowed only for areas outside the existing Gwangju districts and Naju. The regional growth fund program behind the push will start with a 450 billion won ($339 million) fund of funds in 2026 and aim to raise 3.5 trillion won ($2.64 billion) in sub-funds by 2030.