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Analysis of the ICT Start-ups Environment in Seoul Capital Area

Author: 
Chanyoung HongㆍYoungjin WooㆍIn-Hye Yu

This study aimed to provide a basis for formulating policies to promote start-ups in the ICT service industry. The role and position of the ICT industry in the Seoul metropolitan area differ across locations. Therefore, to understand the corporate environment of ICT companies, it is essential to take these characteristics into account. Using data from newly established corporations, an analysis of the location of start-up spaces within the Seoul metropolitan area revealed that the concentration of start-ups was mainly in Gangnam's Teheran Valley and Guro G Valley in the past (2017), but it is now spreading and diversifying (2021). Additionally, a survey on the corporate environment was conducted on 500 start-up companies located in the Seoul metropolitan area. The results showed that the factors that ICT start-ups mainly consider are 1) rent, 2) securing personnel, and 3) external networks. Currently, the Seoul city government mainly support start-up companies by providing rental space due to high rental fee, but in the future, there is a need to seek more investment support to accelerate start-ups.