Seoul City Invests 170 Billion Won in Design Industry... Creating the 'IKEA of Korea'

'Declaration of a "Global Design Industry Leading City"
172.3 Billion Won Invested Over 5 Years... Effects Totaling 408.9 Billion Won
From Practical Designer Training to Insurance Support

Seoul City is fostering the 'IKEA of Korea' and the 'MUJI of Korea.' Over five years, it plans to invest 170 billion KRW to operate specialized educational institutions that nurture capable designers and to create clusters based on the design industry. It will provide step-by-step support from startups to mid-sized companies and establish win-win plans connecting design companies with small and medium enterprises.

On the 16th, Seoul City announced the 'Five-Year Plan for the Development of the Design Industry,' aiming to make Seoul a 'Global Leading City in the Design Industry.'

Seoul City, which first announced the 'Comprehensive Plan for Revitalizing the Design Industry' in 2009 as the first local government to do so, has released a new mid- to long-term development plan after 15 years focusing on ▲building a foundation for the design industry ▲strengthening the self-sustainability of design companies ▲fusion among companies ▲international expansion of Seoul design. Previously, during Mayor Oh Se-hoon's term in 2007, Seoul established the nation's first dedicated design organization and promoted Designomics (Design + Economics) as part of Design Seoul 1.0. Through this, Seoul was simultaneously selected as the World Design Capital (WDC) and a UNESCO City of Design in 2010. Shortly after the start of the 8th elected administration in August 2022, Seoul established the Design Policy Officer (equivalent to Grade 3) to oversee design policies, enacted the Design Industry Promotion Ordinance, and launched the Design Industry Promotion Committee.

Seoul City is focusing on 'design,' a representative soft power infrastructure industry, as a core source of added value creation in manufacturing and service industries, with a high sales effect relative to investment. The design industry shows a sales effect 14.4 times the investment, about three times higher than technology development.

To this end, starting next year, Seoul plans to invest a total of 172.3 billion KRW over five years to induce production worth 408.9 billion KRW and create 2,346 jobs. First, it will operate the 'Seoul-style Design School,' an online and offline design specialized education platform staffed with top-tier instructors. The goal is to strengthen the capabilities of novice and experienced designers in a customized manner and produce field-ready talent. Students can participate in design and business capability enhancement programs operated by Seoul City, and those who achieve a high-level promotion of four stages or more will have opportunities to participate in overseas markets.

To allow small design companies to operate their businesses without worries about delivery issues such as damage, theft, client business suspension or closure, and sales losses due to distribution of similar products, Seoul will introduce the nation's first 'Design Company Assurance Insurance.' Seoul City will cover 30% of the insurance premiums, supporting 1,500 companies over five years. Currently, Seoul City and Shinhan EZ Fire Insurance are jointly developing this, with a planned launch as early as the first half of next year.

Seoul will also create win-win opportunities by linking manufacturing and technology companies hesitant to develop designs due to costs with design companies. Corporate matching will be divided into three categories: tech startups, excellent SMEs, and promising global companies.

There are also plans to transform 'Seoul Design Week' from an exhibition-focused event into an international business venue. The goal is to develop it into one of the world's top three design industry fairs, alongside 'Maison&Objet (France)' and 'Salone del Mobile (Italy).' Additionally, over five years, 235 types of Seoul design goods will be developed and launched and sold at Seoul Design Stores located in DDP and Seongsu.

Choi In-gyu, Seoul City's Design Policy Officer, said, "Design competitiveness determines the competitiveness of a city, and the design industry is the future food source of Seoul. Through active investment and support for capable designers and design companies, we will lay the foundation for Seoul's design industry to leap internationally and restore the reputation of Seoul as the World Design Capital and a City of Design Creativity."