Whether it’s a big city, a medium-sized town or a rural area, every region wants to improve the lives of its inhabitants by capturing as many human and material resources as possible, keeping goods and services circulating within the region and creating more value. On the other hand, start-ups seeking rapid growth are not inherently localised and need larger and wider markets and resources. The centripetal force of a region’s desire to keep resources in-house and the centrifugal force of a startup’s desire for a wider market may seem like opposing and conflicting energies. However, when these two energies meet and dynamically mix within a region, a greater energy is created and, as a result, both the region and the startups will grow. – Part of the Startup Green Paper ‘Startup, is it the future of the region?

With the acceleration of population decline and concentration in metropolitan areas, the regions have entered a period of decline. As companies and jobs have concentrated in the capital, the quality of local jobs has declined significantly. Local investment is often one-off and small-scale, with little impact on the local economy, and various regulations discourage private companies from investing in local businesses.
Young people make up 79% of the population flowing into the capital, and most regions outside the capital are experiencing a sharp decline in productive labour. This regional polarisation has led to overcrowding and increased competition in the capital, which in turn has led to a falling birth rate and a demographic cliff, posing a major crisis for the sustainability of our society as a whole.
In order to overcome this situation, since 2010, creative economy innovation centres have been established in major cities under the leadership of the government, which has led to a proliferation of activities by local creators and local branded companies, as well as technology-based startups. The local start-ups that have grown from these foundations are becoming innovative actors that are injecting new vitality into regions facing population decline and rural depopulation.
What is the definition of a local start-up? Should it be limited to innovative startups with a J-curve growth curve – organisations with iterative and scalable business models – or should it also include local brand and creator companies that are not technology-focused but can scale based on their brand equity? Young-jae Kang(강영재), director of the Jeonbuk Center for Creative Economy Innovation (CCEI, 전북창조경제혁신센터), says it should include all of these. “The definition of a local startup can vary, and not only technology companies, but also local brand and creator companies can contribute to local economic revitalisation and job creation,” he says.
Director Kang identified nurturing tech companies, attracting investment capital and going global as requirements for a more robust local startup ecosystem. “In the past 10 years, the Creative Economy Innovation Centre has focused on the startup stage of companies, but in the next 10 years we need to move to the scale-up stage,” he said. “We need to improve the ecosystem, focusing on the technology sector, and discover and nurture companies with qualitative growth. We also need to enhance the growth potential of start-ups through follow-on investment support, global network connections and open innovation with large and medium-sized enterprises, and upgrade and specialise to make the region more attractive to external investors.”

– In March this year, you will have been in charge of the Jeonbuk Centre for Creative Economy Innovation (hereinafter “Jeonbuk CCEI”) for one year. You used to spend your weekends visiting local companies.
I was not born and raised here, so I thought it was essential to explore the various aspects of Jeonbuk-do with my own feet in order to understand the region. It is not enough to sit down and plan aid projects. It’s important to communicate directly with the people we’re supporting to understand what they really need so that we can tailor our support to their needs.
– When it comes to the distribution of companies in the 14 cities and counties of Jeonbuk-do, there seems to be a bias towards one or two regions.
In Jeonju, Gunsan, Wanju and Iksan, technology and other businesses are concentrated, while the rest of the region is based on local lifestyles. This requires a tailored approach that takes into account the characteristics of each region. In the past, there was a one-size-fits-all approach that did not take into account the type of company or growth stage, but Jeonbuk CCEI now segments companies by growth stage and provides support and upgrades tailored to each stage.
-Please explain Jeonbuk’s startup ecosystem. What do you think are the strengths of Jeonbuk’s startup ecosystem?
Jeonbuk-do has a strong sense of cohesion and community within the local community, with over 30 organisations coming together to form an entrepreneurship council and work towards a common goal. This internal solidarity is not easy to find in other regions, and is further enhanced by the seamless sharing of information. It can be said that Jeonbuk has the potential to achieve greater development if it sets a clear direction.
In order to develop Jeonbuk’s entrepreneurship ecosystem, new resources and ideas need to be brought in from outside, so the Jeonbuk CCEI provides various support for young people from outside the region to make a positive impact and settle down in the region. Initially, there was a mixture of scepticism and expectation, but gradually positive changes began to emerge, gaining the support of the local community. If this period is well managed, Jeonbuk-do will definitely experience a positive transformation.
– Promoting business start-ups and entrepreneurship has been identified as one of the main strategies to address the problem of rural decline. Various studies and surveys also suggest that this approach is an effective way to revitalise the local economy and promote population inflow. What is Jeonbuk CCEI’s response to this?
We are witnessing the reality that regional decline is happening faster than expected, especially in areas with poor transport links and cities without a central core. There is a gap between the pride of the local people and the actual economic situation. Jeonbuk-do is not safe from rural decline either, with the population continuing to decline as young people move away.
It is time for the Creative Economy Innovation Centre to prepare for the new decade. As an institution responsible for regional entrepreneurship, it must play a more developed role. Jeonbuk CCEI is the executing agency responsible for building and supporting the entrepreneurship ecosystem in Jeonbuk-do. Having laid the foundation for the local entrepreneurship ecosystem over the past decade, Jeonbuk CCEI is now building on this foundation. Recently, we have redefined our role and developed a business plan to bring about tangible changes in the local startup ecosystem.
Despite the fact that the entrepreneurship ecosystem is constantly evolving, there are still things that need to be improved. While there has been growth in terms of quantity, there is room for improvement in terms of quality, especially as there are relatively few technology-focused companies, making it difficult to attract investment from venture capitalists (VCs).
The Ministry of SMEs and Start-ups has decided to focus on qualitative growth by highlighting the top 10 gap industries. In response, Jeonbuk-do is planning a regional strategic specialisation project for the top 10 gap industries. The plan aims to promote the qualitative growth of the entire startup ecosystem by helping technology-based companies attract external capital.
-While there are differences in how startup ecosystems are created and function in different regions, the resources needed to create them shouldn’t be too different. In particular, capital, talent, technology, market and community should be sufficient. What cards are you playing to move from quantitative to qualitative growth? We have heard that Jeonbuk CCEI has also started its own batch programme.
In our business structure this year, we decided to include a technology commercialisation component in all our businesses, which was seen as an essential change to ensure the sustainability and longevity of our business.
We launched Jeonbuk’s first batch programme ‘J-CURVE’, which aims to provide acceleration services to selected companies, help them attract the necessary investment and pave the way for them to be selected for the TIPS (Tech Incubator Programme for Startup) programme. Ultimately, the programme aims to produce ‘baby unicorn’ companies
The interest and willingness of companies to participate in the J-CURVE programme was higher than expected, with many excellent companies applying, so we decided to select more companies than originally planned. Investors who have participated in the screening process have also responded positively and have expressed a desire to meet with some of the companies further. We want to continue our work in supporting local businesses and add a technological element, creating an environment where companies from different sectors can thrive – a strategy that will increase their chances of success.
Our primary role is to identify and support entrepreneurs and businesses, with a focus on encouraging start-ups to drive innovation in the region and providing a range of support measures to ensure a smooth start-up process. In doing so, we focus on the sustainability of the business.
– Start-ups need seed money to grow quickly. You’re setting up an investment fund.
Last year, the Jeonbuk Impact Fund was established through the investment of funds of funds (FOFs), and this year the establishment of the Jeonbuk Venture Innovation Investment Fund No. 2 was announced, which has raised $743 million (KRW 1 billion) to date. In addition, the $3.7 million (KRW 5 billion) Krypton Innovation Fund No. 1, a regional investment fund for early-stage companies, is under construction. The reason for the continuous creation of new funds is to provide tangible investment to help local companies grow. Companies that have gone through various incubation programmes will be invited to take the stage at the 2024 World Korean Business Convention in Jeonju. We will also hold a contest (J-CURVE Contest) to attract outstanding startups from outside the region and invest in them in exchange for prizes.
– Jeonbuk CCEI is also active in overseas expansion programmes.
Jeonbuk CCEI hosts the K-Startup Centre Global Going Global Programme. Each year, 25 startups, including 15 in Vietnam and 10 in India, are selected for the programme and receive a total of $4.5 million (KRW 6 billion) in government funding over four years to support their overseas expansion. The selected start-ups received individual buyer-investor meetings, IR presentations to attract investment, exhibition programmes and demo days in the target country.
We help them enter emerging markets such as South East Asia and India. In addition, we are currently working on an inbound project to attract overseas startups to Jeonbuk-do to enter Northeast Asia. This year, we are increasing the number of companies we support.
– Jeonbuk CCEI has also been working on open innovation.
We are also actively promoting open innovation using external resources, which is a key factor in revitalising the local startup ecosystem. At the youth spaces in Namwon and Inje, we have conducted various educational programmes such as food startups based on shared kitchens in cooperation with external institutions such as Baemin Academy, and we recently successfully conducted a social smart store educational programme with Naver, which received great attention.
We are also connecting with the national entrepreneurship ecosystem, especially venture capitalists (VCs). It is clear that Jeonbuk-do is gradually changing and creating an open environment. Compared to the past, the accessibility of external resources has improved, and we have been able to witness the change, especially in the past year, as a number of major startup-related events have been successfully held here.

– Jeonbuk-do is becoming an important destination for financial information. It is recognised as a place of opportunity for access to a wide range of financial data.
The region, where our centre, Jeonbuk CCEI, is located, is positioning itself as a leading platform for financial innovation. With the presence of the National Pension Service (NPS) and the newly established financial hub, it is the only place in the country to have comprehensive information on the four major insurance companies, which is a huge advantage for fintech companies.
The Financial Big Data Hub Centre is the result of a collaboration between the National Pension Service, Jeonbuk CCEI and Jeonbuk-do. The hub, which aggregates and stores various financial data, is uniquely equipped with information on the four major insurance companies, making it an essential resource for companies and institutions in the fintech and financial services sectors. It enables accurate simulations when building B2C service platforms.
It is also home to the Jeonbuk Statistics Data Centre of Statistics Korea, which has a total of 550 different types of data, including demographic data, and operates in parallel.
In addition, there are many agri-bio research institutions (Rurla Development Administration, State Agricultural Research & Extension Services, Korea National University of Agriculture and Fisheries, National Food Cluster, etc.) in the vicinity, creating an optimal environment for securing large amounts of green bio data related to agriculture and agri-food. We operate active infrastructure and businesses in various big data fields, such as holding competitions using geospatial data in cooperation with LX, and strive to create new growth engines for Jeonbuk-do by discovering and nurturing startups related to A.I. and big data.
– Jeonbuk-do has been designated as a new financial centre, joining Seoul’s Yeouido and Busan.
Jeonbuk-do has the potential to become a leader in the financial data sector. Many start-ups have already moved to the region to conduct long-term and short-term research and development.
Jeonbuk-do has an environment where financial data needs can be met quickly, with co-working spaces for collaboration and exchange, various support programmes for commercialisation, and training programmes to improve data literacy.
– Do I need to be eligible for the data and training programmes?
If you are a fintech company, you don’t need any special qualifications to participate. You just need to go through the application process beforehand. Since it can be difficult to move to the Jeonbuk area, we also have a co-working space. In the future, when the financial centre is built, this support will be expanded. More opportunities and support will open up more possibilities for businesses.

– What approaches should be taken to encourage local youth to start up and settle down?
It’s important to encourage young people to settle down and build their own communities. This is a key factor in stimulating local development and innovation. They will only stay in a neighbourhood if there is an environment where they can make a living. Many young people are already coming together to build their own innovative dreams. It is up to organisations like ours to help these young entrepreneurs stay in the region.
In order for young people to start and stay in the region, it is essential that there is a focal point, such as a space or programme, that focuses on them. Currently, many young people start businesses with the best of intentions, but struggle to get their businesses off the ground. We are actively supporting these young people by providing various programmes based on youth spaces and connecting them with experts so that they can actually run their businesses.
I believe that if we plan and prepare systematically from the beginning, there is great potential for continued growth in the future. Currently, Jeonbuk CCEI is doing all the work, but if an organisation or group with a deep understanding of the region takes over the work in the future, it will be able to develop further.
– Jeonbuk-do must have a lot of promising startups, but are there any that stand out in your mind?
There are so many impressive companies. Jangsu Running Crew, a trail running company in Jangsu-gun, Jeollabuk-do, specialises in trail running. Jangsu-gun was once famous for its apples, but today its reputation has faded and its population hovers around 20,000. But the Jangsu Running Crew, formed as part of a youth community development project, is breathing new life into the community.
We met with them several times and proposed the idea of developing Jangsu-gun into a trail running centre. Just as Yangyang County has become a surfing mecca, we thought Jangsu-gun could achieve the same success in this specialist area. Indeed, with our support they have held competitions and other activities, and within a year Jangsu has become a key area for trail running.
Sigorlife is another notable community of young people in Buan-gun who, driven by their love of Buan-gun, have developed creative products through film-making and general store operations to promote the area. They serve as anchor stores, contributing to the local economy and spreading Buan’s charm to visitors from outside the area.
Another impressive example is Jungsuk Kwak, a young farmer who runs a smart farm in Osu-myeon, Imsil-gun. After receiving training in Gimje to acquire the knowledge necessary to run a smart farm, he is working towards his dream of establishing a smart farm in his area. He has caught the attention of many people with his practicality, has travelled to Seoul to try to sell his products in person, and was recently selected for the Smart Farm Support Project to prepare his business in earnest.
In Wanju-gun, Makdong Maksoon Cooperative, which produces makgeolli (a traditional Korean alcoholic drink), is attracting attention. Young people from all over the country have been drawn to Wanju by its charm and are growing up together in what is seen as a great place to settle down. They have worked closely with the local community to develop various activities, and as a result the store has become an important anchor store in the Wanju area. In addition, as a local youth community, they continue to develop meaningful activities and create a new culture in Wanju-gun.
In Gunsan, a company called ‘Sool-igneun-maeul’ has attracted attention for its creative ideas that make use of the history and culture of the area. They have created a brand called ‘Heukwayangjo’, inspired by the famous ‘Baekhwasubok’ liquor produced in Gunsan. They have also contributed to the local community by launching a traditional liquor-making education programme. In addition, they have created private bathrooms in conjunction with Japanese-style houses in Gunsan to further enhance the appeal of the area.
Sesang Park, CEO of Hanboknam, is an expert in business district planning. He was the first person in Jeonju to create a culture of wearing hanbok (traditional Korean costume) at Hanok Village, and now runs a hanbok rental business at Gyeongbokgung Palace that generates 80% of its revenue from foreign customers. Mr Park started his career at FNB by travelling back and forth between Seoul and Jeonju on his own, and now works with more than 50 employees. He knows how to make a living and how not to fail, and has creative ideas such as taking over a wedding studio and turning it into a café to seamlessly connect Hanok Village.
Ji Hee Seol from Jeonju, CEO of From Here, a branding agency for intangible heritage, connects various local creators in the region through her company. Although she is from Busan, she works with local youth to create a community and foster an environment of support and collaboration. Her efforts are making a positive difference in the community.
Local youth entrepreneurs like these are bringing positive change to their communities through their creative ideas and hard work, while respecting the history and culture of the region. Their hard work and passion play an important role in boosting local economies and revitalising their communities.
– You played a role as a private accelerator in Jeju, and now you’re a public accelerator. Has your approach changed in terms of operations?
When I was in the private sector, I could do whatever I wanted, but now I have to be impartial. In Jeju, I wanted to be like someone’s uncle or aunt, and I could always hug and lick the founders when they were struggling, but now as a public accelerator, I try to lay the groundwork for local companies to play on and pay attention to the details.
– Did you achieve all the goals you set for yourself last year?
I have successfully completed what I had planned for last year, and I will continue to implement what I have planned. As a technology incubation organisation, we plan to actively support start-ups with super-gap technologies. We will also continue to pursue continuity in our regional incubation activities.
-Do you have any final messages you’d like to share?
It is very difficult to prevent regional attrition, but local institutions, including Jeonbuk CCEI, are working to overcome it. Our goal is for local start-ups in Jeonbuk to go public and grow into leading companies in the region. To achieve this, the centre is working to attract various external resources, support young entrepreneurs and establish itself as a new growth engine for the region.
Jeonbuk CCEI will continue to serve as the centre of the local entrepreneurship ecosystem and strive to be an agent of change in the region. To do so, we need a lot of help from those in the entrepreneurship ecosystem. I hope we can work together to further develop the startup ecosystem in Jeonbuk and create new growth engines for the region.
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