Gyeonggi-do Startup "This Year, Funding and Recruitment Sluggish, Export Growth Expected"

Startups in the Gyeonggi region expect funding and workforce supply to be sluggish this year, but exports are anticipated to show some positive trends.

According to the '2024 Gyeonggi-do Technology-Based Startup Business Sentiment Index (BSI) Survey' conducted by the Gyeonggi-do Economic Science Promotion Agency in December last year targeting 500 technology-based startups in the province, the sales scale outlook was 98.8, funding 75.7, and workforce supply 82.8. A BSI above 100 indicates a positive outlook, while below 100 indicates a negative outlook.

Among the sales scale, domestic sales scored 95.61, similar to the previous year, while export scale was 110.71, expected to improve slightly compared to the previous year.

By region, companies in southern Gyeonggi showed relatively higher business outlook scores across all sectors compared to northern Gyeonggi.

The most negative industry was rubber and plastics (76.0), followed by textiles, clothing, and leather (77.6), and wood, paper, and printing (78.3). On the other hand, the most positive industry was petroleum and chemicals (111.1). Food and beverages (108.2) and electrical and electronics (107.5) also appeared as positive industries.

Business outlook also varied according to technological characteristics.

Gyeonggi-do Economic Science Promotion Agency

Companies certified as venture businesses or Inno-Biz companies (technology-innovative SMEs) responded more positively than uncertified companies regarding overall sales, domestic sales, export scale, and funding conditions.

However, they were negative about workforce supply.

The most frequently cited management difficulties (multiple responses allowed) were sales and marketing (43.5%) and finance and funding (35.5%).

Kang Sung-cheon, president of the Gyeonggi Economic Science Promotion Agency, stated, "Technology-based startups are the growth engines to overcome the prolonged economic downturn," adding, "We will spare no effort in interest and support for corporate growth, including support for export companies through the Gyeonggi Business Center (GBC) and expansion of the G-Fund for funding."