Pohang City Selected for Final Bid in 'Changeup Ground Regional Expansion Model Establishment Project'

Establishing a Startup Ecosystem for AI Startups to Grow into Global Unicorns
Mayor Lee Kangdeok: "We Will Complete a K-Artificial Intelligence Cluster Linked to the AI Startup Ecosystem"

Pohang City, in collaboration with Gyeongsangbuk-do Province, has been selected for the “Change Up Ground Regional Expansion Model Establishment Project” hosted by the Ministry of Science and ICT, securing 10 billion KRW in national funding.

AI startup incubating center 'SPARK' bird's-eye view.

This project aims to establish a “startup ecosystem hub” in the AI and digital sectors by implementing the most innovative and effective Change Up Ground expansion model among successful cases of private accelerators. Pohang City and Gyeongsangbuk-do, together with POSCO Holdings, prepared for this project and achieved the milestone of being selected.

Change Up Ground is a startup incubation and growth platform operated by POSCO, with 97 digital companies in residence (98% occupancy rate) and a total corporate value of 1.3748 trillion KRW. It was designated as the nation’s first “public-private partnership TIPS Town” by the Ministry of SMEs and Startups in June 2023.

The main components of the project include: ▲ Establishment of the AI startup incubation center “SPARK” ▲ Support for prospective entrepreneurs and startup growth ▲ Intensive high-growth support linked with the POSCO Venture Platform.

The key to being selected for this project was the close collaboration with POSCO Holdings. The consortium received high marks for integrating POSCO Holdings’ expertise in nurturing startups, global networks, and venture investment support to provide tailored programs covering the entire startup growth process from the early stages.

The project will invest a total of 27.7 billion KRW over four years, from this year until 2028, to build an incubation center in the Pohang Free Economic Zone capable of housing 50 startups based on AI technology.

With 900 million KRW in national funding secured for this year, the project will begin basic and detailed architectural design for the incubation center, aiming for completion in April 2028 through construction services and related work.

Applying POSCO’s Change Up Ground spatial design, the center will include spaces for 50 companies, a prototype production lab, shared offices, and capsule sleeping rooms. It is expected to solve the lack of startup space for early-stage startups and become a hub where innovative ideas and products can be realized.

When AI startups move into the center, customized programs for each growth stage will be fully implemented, including ▲ support for discovering prospective entrepreneurs ▲ support for early-stage startups ▲ intensive support for high growth, to help them become global unicorns.

First, in the prospective entrepreneur discovery phase, outstanding prospective entrepreneurs from POSTECH, Handong University, and top graduates from the Apple Developer Academy will be matched with professional startup support consultants to help them discover new business opportunities and develop business plans, enabling their growth into early-stage startups.

Next, in the early-stage startup support phase, excellent prospective entrepreneurs and outstanding startups from inside and outside the region will be provided with space in “SPARK” and receive tailored business consulting for investment attraction, technology transfer, and other business needs.

In addition, to ease the initial funding barrier, up to 5% of loans and interest will be supported, along with assistance for product/service advancement, technology verification, and dedicated POSCO managers, laying the foundation for early growth.

Finally, in the intensive high-growth support phase, outstanding companies that have passed market validation will receive focused support for full-scale business expansion. After receiving Series A (1?5 billion KRW) or higher “dress-up” support in connection with the POSCO Venture Platform, pre-investment consulting, venture funds, angel investment, and external VC review and recommendations will be provided. Participation in POSCO Group’s business networking programs, exhibition booths, promotional materials, and overseas big tech company matching through POSCO International’s global network will also be offered.

The city expects that this project will provide growth opportunities for local AI startups and serve as a catalyst for new innovation in the regional industry through AI industry promotion policies.

Furthermore, the city plans to use this project as a starting point to attract the government’s key AI policy initiative, the “National AI Computing Center,” and transform the Pohang Free Economic Zone into Korea’s leading K-Artificial Intelligence cluster where startups and AI technology converge.

Mayor Lee Kangdeok stated, “Being selected for this project is an important opportunity for Pohang to establish itself as a central hub for startups and digital innovation,” and added, “We will leap forward as a global K-startup innovation city that continuously produces global AI unicorns representing Korea.”

Once the “SPARK” AI startup incubation platform is established, the city plans to integrate it with the startup support infrastructure being promoted in Gyeongsan, Andong, and Yeongcheon, and expand the Change Up Ground innovation model throughout Gyeongsangbuk-do Province.