Why Startups Dreaming of Unicorn Status Are Heading to Gangwon-do Mining Villages

Support for Promising Startups Relocating to Gangwon-do 'Next Unicorn Project'
Companies Expected to Complete Relocation in Early Next Year

Officials from companies finally selected in last year's 3rd Next Unicorn Project are taking a commemorative photo. The companies selected in the 3rd round include Kick the Hurdle, VM Korea, and Joan Kang.

Artison & Ocean, NextOn, Jewoo Technology, Blue Motion Tech, Dongnam Megatech, Stronghold Technology... These companies, which have solid business models and are rapidly growing in their respective fields, share one thing in common besides being promising startups. They are all preparing to relocate to Gangwon Province. Why are these startups, aspiring to become unicorn companies (unlisted companies valued at over 1 trillion KRW), moving to Gangwon instead of downtown Seoul?

According to the Small and Medium Business Corporation (SBC) on the 27th, the first results of the 'Next Unicorn Project,' which supports the relocation of promising startups to Gangwon Province, are expected to emerge in the first half of next year. Currently, companies preparing to relocate are promoting the construction of production facilities in the region, and full relocation completion companies are expected to appear in the first half of next year.

The Next Unicorn Project started in 2019 with the aim of revitalizing the local economy and promoting national balanced development by supporting the relocation of youth startup companies to the abandoned mining areas of Gangwon. It is operated in cooperation with SBC, the National Balanced Development Committee, Kangwon Land, Korea Mine Reclamation Corporation, and the Foundation for Cooperation between Large, Small, and Medium Enterprises and Agriculture, Forestry and Fisheries. Selected companies must relocate at least one of their headquarters or factories to one of the following locations in Gangwon Province: Taebaek City, Samcheok City, Yeongwol County, or Jeongseon County within three years. Companies selected in 2019 signed contracts by May of the following year and are preparing to relocate within three years, by the first half of 2023.

For the companies selected in the first round in 2019, Artison & Ocean, which develops technology to use smartphones as scuba diving equipment such as diving computers, compasses, and cameras, is building a smart factory in Taebaek City. NextOn, a smart farm company, is also establishing cultivation facilities in Taebaek. Jewoo Technology, which develops implant dental processing machines, has moved into the Yeongwol County Startup Incubation Center. Companies selected in the second round, including Blue Motion Tech, Dongnam Megatech, and Stronghold Technology, are also preparing to relocate to Taebaek. Third-round selected companies such as Kick the Hurdle, VM Korea, Joanne Kang, Yonghyun BM, and Kimblade have begun full-scale relocation efforts to Gangwon’s Taebaek City and Yeongwol County.

The reason why successful startups are readily moving to Gangwon is because the benefits given to companies selected for this project are substantial. Each company can receive up to 1 billion KRW in support funds provided by Kangwon Land, and SBC offers linked policy funds and other support. Korea Mine Reclamation Corporation gives preferential treatment for alternative industry loans in abandoned mining area promotion districts, and local governments also provide relocation support. Considering the investment market for startups is freezing, relocating to Gangwon can actually be an opportunity.

The target relocation areas also expect new job creation and economic revitalization in the abandoned mining regions. For example, Blue Motion Tech, which develops the core technology of 'ultra-precision stages' used in semiconductor, display, and battery industries, plans to complete the construction of its research institute and factory in Taebaek by next year and is hiring students from Taebaek Mechanical High School as it settles in the area. Kim Hak-do, director of SBC, emphasized, "The Gangwon Next Unicorn Project is a collaboration between local governments and related organizations to simultaneously support the innovative growth of youth startups and the revitalization of the local economy," adding, "We will actively support excellent companies to create quality jobs and underpin regional balanced development."