Driving Innovation in Daejeon, Busan, and Gwangju
Despite the pronounced concentration of the startup ecosystem in the Seoul metropolitan area, a growing number of companies are emerging and thriving in regional hubs across South Korea. In various industries such as fintech, IT, and biotechnology, these companies are gradually establishing their presence and are being recognized as new models for balanced regional development. Even with structural limitations, such as venture capital being heavily concentrated in the capital region, regional startups are demonstrating their capabilities through unique technologies and differentiated services.
One company drawing significant attention recently is LucentBlock, a fintech firm headquartered in Daejeon. Founded in 2018, LucentBlock is preparing to apply for a new license for a fractional investment over-the-counter trading platform from financial authorities. As a leader in the domestic real estate security token offering (STO) sector, LucentBlock has listed and offered public subscriptions for 11 real estate assets- the highest number in the industry-worth approximately 30 billion won, and currently holds a 70% market share based on trading volume. These achievements are also benefiting the local community. The average age of employees is 27.5, and with 24% of staff having married while employed, the company is helping to establish a foundation for young people to settle in the region.
LucentBlock is also regarded as a leading example of implementing the government’s national agenda of building a digital asset ecosystem and promoting balanced regional development. Through the “Daejeon Startup Space” project, the company attracted more than 60% of its investors from the local community and achieved a cumulative return of 16%. A LucentBlock representative stated, “If a startup originating in Daejeon can obtain an official financial investment business license under the Capital Markets Act and establish a safer, more reliable service platform within the institutional framework, it will serve as a meaningful reference. We will continue to serve as a financial innovation platform connecting the capital region and local areas, with Daejeon as our base.”
Founded in 2019, Kristin Company is revitalizing the stagnant footwear industry in Busan with its artificial intelligence (AI)-based shoe manufacturing platform, “Shinple.” The core of the service is matching AI-powered shoe factories and brands. By training the system with quantitative data such as factory size, production volume, and materials, as well as qualitative factors like the factory owner’s management style, the platform automatically recommends the optimal factory when a designer enters their desired specifications. The manufacturing process, which previously took six months, has been shortened to one month, and within just six months of launch, the company has secured over 250 brands as clients.
Kristin Company recently launched its generative AI design platform “Shoecatch,” applying AI to every stage of manufacturing and design, and is bringing renewed attention to Busan’s once-dominant footwear industry. In particular, the company’s comprehensive partnership with Treksta, a leading outdoor brand in Busan, is being recognized as a model for collaboration between local businesses. Analysts note that Busan’s port logistics infrastructure and manufacturing base, when combined with AI technology, are creating new growth engines for the region.
Startups originating in Gwangju are also making notable progress. Founded in 2019, Intflow developed “EdgeFarm,” an AI automation solution designed to address labor shortages in pig farms. EdgeFarm stands out for significantly reducing AI operating costs by using standard CCTV cameras and proprietary edge computing technology, rather than expensive equipment. The AI, trained on over one million hours of pig farming footage, automatically measures the number of pigs, their feed intake, and activity levels around the clock, enabling managers to monitor livestock conditions in real time.
This has greatly improved the efficiency of repetitive tasks such as pre-shipment weight checks. Previously, weighing 100 pigs required three workers and took three to four hours, but with EdgeFarm, a single worker can complete the task in just 15 minutes. As a result, the number of farms using the system grew from seven in 2022, when it was first introduced, to 50 within a year-an increase of more than sevenfold. Currently, the service is provided to 83 farms in 10 countries, including the United States and France, expanding its presence in overseas markets as well as domestically.
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