Open to startups based in designated cities and companies seeking to relocate

Region-led selection model introduced for first time

Six more startup cities to be added in second half of year

Minister of SMEs and Startups Han Sung-sook speaks at the "Startup City Development Project Strategy Presentation" at the DGIST Convention Hall in Daegu on May 21. [Ministry of SMEs and Startups]
Minister of SMEs and Startups Han Sung-sook speaks at the "Startup City Development Project Strategy Presentation" at the DGIST Convention Hall in Daegu on May 21. [Ministry of SMEs and Startups]

The Ministry of SMEs and Startups announced Monday it has opened an integrated call for applications under the "2026 Startup City Development Project."

The announcement follows up on the ministry's April designation of Daegu, Gwangju, Daejeon and Ulsan as the project's first four startup cities. The initiative is designed to help startups in those cities grow and take root, while also encouraging high-potential companies from elsewhere to relocate there.

A startup city is defined as an urban hub where entrepreneurial activity thrives on the strength of local universities and research institutes, innovative talent, public data and pilot infrastructure. Government support tools — including commercialization research and development and investment — are integrated into the model.

Despite South Korea's globally competitive startup ecosystem, key resources such as investment, talent and support organizations remain heavily concentrated in the Greater Seoul area, limiting growth potential for startups in other regions.

In response, the government has pledged to designate 10 startup cities by 2030 to bring regional startup ecosystems up to a global standard. Daejeon, Daegu, Gwangju and Ulsan were selected first, with six more cities to be added in the second half of this year.

The current call for applications offers two tracks: an "investment-linked startup package" for early- and growth-stage companies with a track record of attracting investment, and a "regional startup package" supporting the growth and relocation of startups within designated cities. Each selected company can receive up to 400 million won (about $263,000) in commercialization funding.

The ministry plans to select a total of 278 companies across the four cities — 74 in Daegu, 73 in Gwangju, 74 in Daejeon and 57 in Ulsan.

The call marks the first large-scale commercialization support effort to put the project's core principle of regional leadership into practice. Departing from the traditional centrally directed approach, 100 of the 278 slots will be filled through an "autonomous selection" process in which local governments independently design their own eligibility criteria and selection procedures to match regional strategies.

Under the autonomous selection model, each startup city will use its own standards and procedures to choose recipients from pools such as companies backed by regional funds, firms recommended by universities or research institutions, and standout graduates of local startup support programs.

The remaining 178 companies will be chosen through an open competitive process via the K-Startup platform. The call is open not only to startups already based in a designated city but also to companies wishing to relocate there. Firms selected for relocation will receive an additional benefit: local governments will cover 10 percent of their required co-payment.

Jo Gyeong-won, the ministry's director general for startup policy, said the project represents "a new policy model in which regions design and grow their own startup ecosystems." He added that the ministry would work to ensure "startup ecosystems reflecting each region's strengths and characteristics can be built on the foundation of local government autonomy and accountability."


boo@heraldcorp.com