Seoul ranks ninth best city in global startup ecosystem report

Seoul has been recognized as one of the top 10 cities in the world for its thriving startup ecosystem.

A rendered image provided by the Seoul Metropolitan Government on Wednesday shows the so-called creative industry hub near Namsan, central Seoul, which will open in 2027 and serve as the headquarters of facilities for creative industries. [SEOUL METROPOLITAN GOVERNMENT]

Seoul has been recognized as one of the top 10 cities in the world for its thriving startup ecosystem.

According to the 2024 Global Startup Ecosystem Report released by U.S.-based innovation organization Startup Genome on Monday, Seoul ranked ninth out of 300 cities. The capital climbed three spots from last year, with its startup ecosystem value soaring more than fivefold to $2,370 million compared to 2021. Seoul had ranked 10th in 2022 but dropped to 12th last year due to inflation and a shrinking investment market.

The report highlights Seoul as the highest-ranked city in Asia and fifth globally in the funding category, driven by significant investments in companies in recent years. The Seoul Metropolitan Government invested a total of 3.6 trillion won ($2.7 billion) in 1,372 companies from 2019 to 2022. Additionally, the number of unicorn companies in Seoul increased from 17 last year to 20, and successful startup exits rose to 208 from last year’s 132.

Seoul has built and promoted infrastructure for startups across the capital in recent years, including the opening of the Seoul Startup Hub Scaleup Center in April last year. The center aims to attract financial investment in local startups.

The report also noted Seoul's strong progress in industries such as AI, big data and analytics, life sciences and advanced manufacturing and robotics.

In late May, the city government opened the Seoul AI Hub, providing office space and programs to nurture talent. Additionally, the Seoul Biohub was opened in Dongdaemun District in April to support startups in the bio and medical sectors.

“Seoul has become the ninth best city globally for startups thanks to the city's continuous efforts to create an innovative startup environment and the establishment of a startup ecosystem where founders in various fields can cooperate and grow,” said Lee Hae-woo, head of the Seoul Metropolitan Government’s Economic Policy Department. “By 2030, we aim to create a startup ecosystem that will yield 50 globally recognized unicorn companies.”

According to the report, Silicon Valley ranked No. 1, followed by New York and London in second place and Los Angeles and Tel Aviv in fourth. Among Asian cities, Singapore ranked No. 7, Beijing No. 8 and Tokyo No. 10.

BY CHO JUNG-WOO [cho.jungwoo1@joongang.co.kr]