Seoul has been recognized as the 9th best city globally for starting a business, according to the latest report by Startup Genome, a leading global startup ecosystem evaluation agency. This marks the city’s highest ranking ever, showcasing a significant leap in its startup ecosystem value. It surged from 54 trillion won (approx. $ 39 billion) in 2021 to an estimated 308 trillion won ($237 billion) in 2024.
The Global Startup Ecosystem Report 2024, announced at London Tech Week, surveyed 300 cities worldwide. Seoul’s impressive rise to 9th place places it ahead of notable European startup hubs like Paris (14th) and Berlin (15th). This achievement is a testament to Seoul’s growing influence and competitiveness in the global startup landscape.
Key Evaluation Metrics
Seoul’s top-tier ranking is attributed to its strong performance across various evaluation metrics. The city scored highly in funding (10 points), ecosystem activity (9 points), creative experience and talent development (9 points), and knowledge accumulation (9 points).
In particular, in the financing category, Seoul received a perfect score of 10, ranking it first in Asia and fifth globally despite the long-term cold investment period following the pandemic.
The report also highlighted Seoul’s remarkable improvement in market entry, which jumped from 1 point in 2023 to 7 points in 2024. This increase reflects the enhanced exit performance of startups in Seoul, contributing significantly to the city’s overall ecosystem value.
The number of unicorn companies in Seoul counted by ‘Startup Genome’ increased to 20, and the number of companies that successfully recovered funds increased significantly to 208.
Seoul’s startup ecosystem is bolstered by its strong performance in key industries such as AI, big data, life sciences, and robotics. The city has been expanding infrastructure for each industry, including biomedical (Hongneung), artificial intelligence (Yangjae), fintech (Yeouido), and creative industries (Sangam), to revitalize a sustainable startup ecosystem.Â
Strategic Initiatives and Future Plans
‘Startup Genome’ evaluated that based on this foundation, the promotion of active all-around entrepreneurship policies for the growth of innovative startups, such as open innovation and customized support to support entry into the global market, was a factor in promoting the growth of the startup ecosystem.
The city’s proactive policies have been crucial in this success. Seoul has created the ‘Future Innovative Growth Fund and the ‘Seoul Vision 2030 Fund,‘ focusing on expanding financial support for startups. Additionally, the city has opened the Seoul Startup Hub Scale-Up Center and established an open innovation platform to enhance collaboration between large and mid-sized companies.
To support international expansion, Seoul provides local space and market analysis at six global bases, including Vietnam, India, and Singapore locations. This initiative aims to facilitate domestic startups’ global market entry, further enhancing Seoul’s position as a leading startup ecosystem.
In the global context, Silicon Valley remains the top startup ecosystem, followed by New York City and London, which are tied for second place. Tel Aviv and Los Angeles share the fourth spot, while other top Asian cities include Singapore (7th), Beijing (8th), and Tokyo (10th). The 2024 report also notes significant improvements in cities like Miami and Zurich, highlighting the dynamic and evolving nature of the global startup ecosystem.
Overall, Seoul’s rise in the rankings reflects its robust infrastructure, strategic investments, and supportive policies, which continue to drive its growth as a premier destination for startups. As the city aims to become a global top-five startup city by 2030, it sets a strong example for other aspiring startup hubs worldwide.
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