Government: "Suseong Alpha City to Attract 1,000 Companies and Young Talent"

Daegu Regional Economic Development Public Forum
Promotion of National Digital Innovation Zone Establishment
Joint Project by Daegu City and Ministry of Science and ICT

Daegu Suseong Alpha City, once called the "Miracle of the Vineyard," will transform into an innovation district housing 1,000 digital companies in seven years.

On the 4th, the government held a "Public Livelihood Discussion" at Kyungpook National University in Buk-gu, Daegu, announcing plans to promote this initiative.

[Image source=Yonhap News]

This livelihood discussion, themed "Daegu Rising with Advanced New Industries," included measures for Daegu to become a hub for new industries and a major economic zone in the southern region.

The Ministry of Science and ICT will select key locations with high growth potential within regions to create "National Digital Innovation Districts" where digital companies and talent gather.

The goal is to foster hubs outside the metropolitan area that function as digital new industry centers comparable to Gangnam and Pangyo, serving as forward bases for regional industries.

In Daegu, Suseong Alpha City, which is growing as a cluster for software companies, has been chosen as the target.

Until 2014, Daegu Suseong Alpha City was nothing more than a vineyard on the outskirts of Suseong-gu, but it has now grown to house around 200 digital companies. Daegu city officials refer to it as the "Miracle of the Vineyard," reflecting its rapid transformation in just over a decade.

The government plans to develop Daegu Suseong Alpha City, which hosts numerous digital companies and has good accessibility to regional flagship universities and major national industrial complexes in the Yeongnam region, into a National Digital Innovation District.

Specializing in manufacturing innovation, the plan is to cultivate a digital company ecosystem differentiated from the metropolitan area and establish a forward base for the digital transformation of the Yeongnam manufacturing belt.

[Image source=Yonhap News]

Since last year, the government has been investing 2.1 billion KRW annually to conduct a pilot project over three years.

Last year, four universities?Daegu Gyeongbuk Institute of Science and Technology (DGIST), Kyungpook National University, Pohang University of Science and Technology, and Keimyung University?established seven artificial intelligence and software research centers within Suseong Alpha City. The main goal is to create a close industry-academia cooperation system between companies and universities.

The Ministry of Science and ICT is currently working with Daegu city to develop mid- to long-term and large-scale project plans to establish Suseong Alpha City as a "Digital Research and Development Hub." The plan includes attracting excellent domestic and international research teams by building superior research facilities and large R&D projects.

In December last year, Daegu city and the SK consortium signed an investment agreement worth approximately 800 billion KRW related to the main project, including the construction of an artificial intelligence data center.

To ensure living conditions preferred by young talent near Suseong Alpha City, plans are underway to accelerate urban development such as shopping malls, subway stations, and apartment complexes.

The government aims for Suseong Alpha City, designated as a National Digital Innovation District, to host 1,000 digital companies and 20,000 resident personnel by 2031.

They expect to create an attractive workplace where excellent digital companies and young talent can find ample growth opportunities without having to move to the metropolitan area.

The government anticipates that accelerating the digital transformation of the Yeongnam manufacturing belt, which accounts for 38% of nationwide manufacturing sales, will present a new regional development model to overcome the crisis in local industries.