"Governor, you have stated your intention to make Chungbuk a startup special zone. In ten years, should Chungbuk be remembered as a region producing semiconductors and biopharmaceuticals, or as the area that birthed the most AI entrepreneurs in South Korea?"
Chungbuk has always been at the center of South Korea. Located in the heart of the country, it serves as a transportation hub connecting the capital region with Yeongnam and Honam. With the growth of Osong's biopharmaceuticals, Ochang's semiconductors, and Chungju's advanced industries, it has played a crucial role in the nation's manufacturing sector.
However, Chungbuk faces another challenge. While industries grow, young people are leaving, and although factories are increasing, the region's future remains uncertain. Newly elected Governor Shin Yong-han has directly addressed this issue.
He emphasized integration, harmony, livelihood, and jobs, presenting 'Startup Special Zone Chungbuk' as the core vision of his administration. This declaration marks a shift from creating industrial complexes to fostering a startup ecosystem. Chungbuk now stands at a crossroads: will it remain an industrial center, or leap forward as the hub of entrepreneurial innovation in the AI era?
The startup special zone is Chungbuk's survival strategy.
The biggest crisis facing local governments in South Korea is population decline. However, this decline is merely a symptom; the root cause lies in the lack of job opportunities, which stems from the absence of new businesses. The essence of regional extinction ultimately lies in the lack of entrepreneurship.
Shin Yong-han's emphasis on the startup special zone during his campaign reflects this understanding. In a post-election interview, he stated that he would create an environment where Chungbuk's talent no longer migrates to the capital region but instead starts businesses and grows locally. He also promised to establish a 200 billion won investment fund and a system for failed entrepreneurs to make a comeback.
This aspect should not be viewed merely as an economic pledge.
Historically, local governments have competed to attract businesses, measuring success by the number of industrial complexes and factories established. However, in the AI era, the rules of competition are changing entirely. It is no longer factories that hold the competitive edge, but people; not buildings, but ideas; and not budgets, but ecosystems.
Silicon Valley became the global center of innovation not because of massive factories, but due to the presence of Stanford University, entrepreneurs, investors, and a culture that embraces failure. Similarly, Shenzhen, once a manufacturing city, has now become a symbol of entrepreneurship and innovation. Ultimately, a region's future competitiveness will likely be determined by how many businesses it fosters rather than how many it attracts.
In this context, Shin Yong-han's vision for a startup special zone represents both a strategic and survival plan for Chungbuk. It signifies a shift from a factory-centered economy to one focused on entrepreneurship.
Can AI startups thrive in a land known for semiconductors and biopharmaceuticals?
Chungbuk's greatest strength lies in its existing foundations for future industries. Osong is home to biopharmaceuticals, Ochang to semiconductors, and Chungju and Jincheon are developing battery industries. Cheongju Airport is evolving into a central airport for the region, and the Gangho Axis is positioning Chungbuk as a new national growth axis.
The challenge is that these assets have yet to be connected into a cohesive ecosystem. Industries grow independently, universities operate separately, research institutes function in isolation, and entrepreneurship remains in a different realm. In the AI era, this fragmentation becomes a significant weakness.
Today, most innovative companies that drive the world emerge at the intersections of different industries. New value is created when AI meets biopharmaceuticals, semiconductors connect with software, and manufacturing converges with data.
Chungbuk possesses that potential. If biopharmaceutical companies in Osong connect with semiconductor firms in Ochang, if local university research leads to startups, and if investment capital links with regional startups, Chungbuk can evolve from a mere industrial base to an innovation hub.
In the AI era, competitiveness will no longer stem from production capacity but from connectivity. Who can connect more talents? Who can link more technologies? Who can unite more ideas? These factors will determine the future.
Chungbuk is home to 19 universities, graduating numerous young people each year. However, many leave for the capital region. The issue of talent outflow that Shin Yong-han emphasizes is ultimately related to this context. The future of Chungbuk is likely to be determined not by the number of semiconductor factories but by the number of young people who remain in the region.
The success of the startup special zone also hinges on this.
Many people perceive Chungbuk's competition as being with Daejeon or Sejong, given Daejeon's status as a research and development hub and Sejong's role as the administrative capital. However, competition in the AI era does not operate in that manner. Chungbuk's competitors are not specific regions but cities with innovative ecosystems.
Chungbuk's true competitors are cities like Austin in the U.S., Tel Aviv in Israel, and Shenzhen in China. The commonality among these cities is that entrepreneurship is at the heart of their local economies.
Shin Yong-han, who has experience as a CEO and venture investment expert, stated during his campaign announcement that "we need a serving manager, not a ruling administrator." This statement is not mere political rhetoric.
It signifies a shift from an administration-centered governance model to an economy-centered one. In the past, local governments focused on budget allocation. Moving forward, their role must be to nurture entrepreneurs, connect investors, and build innovative ecosystems. In the AI era, local governments must also become platforms.
A platform where entrepreneurs gather, investors converge, and universities and businesses connect. If Chungbuk succeeds in becoming a startup special zone, it will not only transform itself but could also redefine the model for regional development across South Korea.
This marks a transition from an era of creating industrial complexes to one focused on establishing startup ecosystems. The success of Shin Yong-han's administration ultimately depends on this.
What matters more than how much budget has been secured is how many young people remain in Chungbuk. More significant than the number of companies attracted is how many new businesses are born. More critical than the number of buildings constructed is how many new entrepreneurs emerge. Shin stated, "I want to be evaluated based on results as a governor."
Thus, in four years, Chungbuk residents will have clear questions to ask: How many AI startups has Chungbuk created? How many young people has Chungbuk retained? How many future jobs has Chungbuk generated? If these questions can be answered, Chungbuk could become South Korea's first true startup special zone.
SWOT Analysis:
Strengths: Chungbuk is one of the few regions with a biopharmaceutical cluster in Osong, a semiconductor industrial complex in Ochang, and a foundation for battery industries. It also has transportation infrastructure, including Cheongju Airport and the Gangho Axis. Additionally, Governor Shin Yong-han's clear vision for a startup special zone is a significant strength.
Weaknesses: The scale of the startup ecosystem is smaller compared to the capital region, and the venture investment market is limited. There is a continuous outflow of talented individuals to the capital region, and concerns about a lack of experience in regional administration persist.
Opportunities: The AI revolution presents new opportunities for Chungbuk. By combining semiconductors, biopharmaceuticals, and battery industries with AI, a new startup ecosystem can be established. The development of the Gangho Axis and policies for balanced regional development can also serve as growth drivers.
Threats: The concentration of resources in the capital region remains strong. Competition with Daejeon and Sejong is fierce. If the startup special zone remains merely a support initiative and fails to build an ecosystem, it will struggle to achieve results.
ABC asks Governor Shin Yong-han.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.