SEOUL, KOREA - Could the next Silicon Valley be located in Korea? Today, Pangyo Techno Valley, an industrial complex in Seongnam city, is emerging as the premium high-tech R&D cluster in Korea.
Back in 2005, the national government initiated the 10-year project jointly with Gyeonggi Province, aiming to build a global R&D cluster which concentrates on high-technologies such as Information Technology (IT), Nano Technology (NT), Bio Technology (BT), and Culture Technology (CT).
As of now, there are 331 IT, 75 BT, and 61 CT companies including AhnLab, SK Telesys, Kakao, and Posco ICT. Korea’s ‘big four’ game companies – Nexon, NCSOFT, NHN Entertainment, and Neowiz - will have moved to Pangyo by this year. The annual sales of the companies account for over half of total game companies in Korea.
Kim Chun-sik, leader of Pangyo Support Group at the Gyeonggi Institute of Science & Technology Promotion (GSTEP).
By 2015, over 1,000 companies will have completed the relocation. This will bring about significant economic effects to the region with over 13 trillion in sales and 80,000 employees. Over 25.7% of the tenant companies are listed on the Korean stock market.
Easy access to the Gangnam District (only 13 minutes by subway), and a good corporate and residential environment has driven a number of high-tech companies to flock to the Pangyo Techno Valley.
To foster a favorable business eco-system, the local government has established diverse infrastructure including a global R&D center, a public support center, and the Industry-Academia-Research Institute R&D center.
The global R&D center was designed to enhance technological competitiveness of tenant companies by attracting government research institutes and R&D centers of global companies.
The global R&D center was designed to enhance technological competitiveness of tenant companies by attracting government research institutes and R&D centers of global companies. The Public Support Center aims to produce educational facilities, leasing space, and international conference halls for the convenience of companies. The Institute R&D center is providing a stage for industry-academia cooperation by attracting R&D centers of leading local universities.
“We are focused on providing diverse support projects for the tenant companies,” said Kim Chun-sik, leader of Pangyo Support Group at the Gyeonggi Institute of Science & Technology Promotion (GSTEP).
“Reflecting the companies’ need for skilled manpower, we have set up an education committee recently. As most companies are knowledge-based, demand for talented employees is high.” The committee members meet every month to discuss training infrastructure, curriculum, and business plans.
The Institute R&D center is providing a stage for industry-academia cooperation by attracting R&D centers of leading local universities.
GSTEP has recently provided training for Project Management Professional (PMP), aiming to foster employees who can contribute to improving the success rate for projects. Trainees are qualified to take the PMP exam. The organization will continue to offer diverse programs including Microsoft Certified Solution Developer (MCSD) this month and IT specialist curriculums in September.
On top of all this, the Pangyo Support Group launched the Pangyo Techno Valley Forum last December to provide networking opportunities among companies. “Through a network of companies, colleges, and research centers, they can exchanges information and knowledge, as well as cooperate on business projects. The forum has also separately run the Task Development meetings where relevant companies can jointly carry out R&D projects,” he said.
“Despite the initial worries about the cluster, the Pangyo Techno Valley is growing into a global IT-convergence cluster. We will continue to step up efforts by providing better infrastructure, manpower training, as well as networking opportunities among companies,” Kim said.