Electrical and Electronics Sectors Drive Recovery in Gumi
Increase in High-Capital Manufacturing Corporations within National Industrial Complex
In 2024, the number of newly established corporations in the Gumi region rebounded for the first time in four years, injecting new vitality into the local industrial landscape.
In particular, the recovery in key manufacturing sectors such as electrical and electronics has been remarkable, and the number of high-capital corporations established within the Gumi National Industrial Complex has also increased significantly.
On June 21, the Gumi Chamber of Commerce and Industry in North Gyeongsang Province released its analysis of the "2024 Status of Newly Established Corporations in the Gumi Region," based on data from NICE Information Service Co., Ltd.
According to the report, a total of 520 new corporations were established in the Gumi region this year, representing a 5.3% increase compared to the previous year. This marks the first recovery in the startup market since 2020, following the stagnation caused by COVID-19, and suggests that the startup ecosystem is regaining its vibrancy.
By month, January saw the highest concentration of new businesses, with 75 corporations established. By industry, manufacturing accounted for the largest share with 165 corporations (31.7%), followed by wholesale and retail with 91 (17.5%), services with 81 (15.6%), construction with 62 (11.9%), and real estate with 30 (5.8%).
◆ Electrical and electronics lead the way; machinery, metals, textiles, and chemicals also on the rise
Notably, the number of newly established manufacturing corporations increased by 17 year-on-year to 165, making manufacturing the key driver of overall growth.
Within manufacturing, the breakdown was as follows: electrical and electronics 71 corporations (43.0%), machinery and metals 55 (33.3%), others 25 (15.2%), and textiles and chemicals 14 (8.5%).
This indicates that Gumi's traditional industrial bases?electrical and electronics, as well as machinery and metals?are entering a recovery phase.
Meanwhile, some sectors such as wholesale and retail (-17 corporations), services (-10), and information and communications (-6) experienced declines, highlighting a mixed outlook across industries.
◆ Increase in small-scale startups... Building a robust ecosystem is key
Looking at the capital distribution of newly established manufacturing corporations, 118 corporations (71.5%) had capital of 50 million won or less. This suggests that small-scale startups with lower capital remain a major component of the local startup structure.
Nevertheless, among the 47 manufacturing corporations with capital exceeding 50 million won, as many as 30 (63.8%) were located in the Gumi National Industrial Complex, indicating that high-capital startups centered around the industrial complex are also active. Specifically, there were 19 in the 1st Complex, 7 in the 4th Complex, and 2 each in the 2nd and 3rd Complexes.
Shim Kyujeong, head of economic research at the Gumi Chamber of Commerce and Industry, stated, "The increase in the number of newly established corporations this year is a positive sign, but the rise in small-scale startups with capital under 50 million won presents new challenges for the local economy." He added, "For qualitative growth of the startup ecosystem, comprehensive scale-up policies are urgently needed?not only financial support but also technology development, marketing, and distribution."
◆ Local manufacturing shows potential for rebound... Policy linkage needed
The city of Gumi is pursuing manufacturing innovation centered on electronics and IT, as well as expanding corporate attraction in connection with the creation of a smart national industrial complex. Experts agree that "in order for the increase in newly established corporations to be more than a short-term rebound, the construction of a sustainable startup infrastructure and the strategic fostering of industries must go hand in hand."
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