Seoul City declares ‘Global Design Industry Leading City’… KRW 172.3 billion invested over 5 years in ‘5-year design industry development plan’

by times news cr

The city of Seoul is developing ‘Korea’s IKEA’ and ‘Korea’s MUJI.’ We operate a professional educational institution that trains capable designers and create clusters that will become the basis for the growth of the design industry throughout Seoul. In addition to providing support at each stage of growth from design startups to mid-sized companies, we also find ways to achieve coexistence by connecting design companies and small and medium-sized businesses.

In addition, we will introduce damage compensation insurance for the first time in the country so that small design companies can do business with peace of mind without worrying about delivery failures, and we will also hold an international expo to connect Korean design companies with overseas design companies and buyers.

Seoul is once again taking a leap forward as a ‘leading city in the global design industry’ by raising its status as the world’s design capital and developing the design industry that will be responsible for the future of Seoul.

In 2007, when Mayor Oh Se-hoon was in office, the city created the first design organization (Design Seoul Headquarters) in the country and promoted Design Seoul 1.0, including Designomics (Designomics, Design+Economics). Through this, it was simultaneously selected as the World Design Capital (WDC) and UNESCO Creative City of Design in 2010, winning the ‘Design City Double Crown’.

The “5-year design industry development plan” announced by the Seoul Metropolitan Government this time has the main contents of ▴establishing the “foundation” for the design industry, ▴strengthening the “self-sustainability” of design companies, ▴“convergence” between companies, and ▴international “spreading” of Seoul Design. It has been 15 years since the announcement of the first local government’s ‘comprehensive plan to revitalize the design industry’ in 2009.

In August 2022, immediately after the start of the 8th popular election, a new Design Policy Director (level 3 equivalent) was established to oversee Seoul City’s design policy, the Design Industry Promotion Ordinance was enacted (March 2023), and the Design Industry Promotion Committee was launched (2023). Design Seoul 2.0 is being promoted (in October 2018).

Design, a representative soft power infrastructure industry, is a key source of added value in the manufacturing and service industries and is characterized by a high sales-to-investment effect. In fact, the design industry shows a sales-to-investment effect of 14.4 times, which is about three times higher than technology development, and its economic value also rose sharply from about KRW 69 trillion in 2012 to KRW 178 trillion in 2022.

The international competitiveness of the design industry is recognized as 4th in the world, but the reality is that most achievements are still concentrated in large companies. Accordingly, the city of Seoul announced that it will establish itself as a ‘leading city in the global design industry’ by implementing systematic strategies ranging from laying the foundation for the design industry to take root firmly to providing customized support for designers and design companies.

This plan operates 27 projects under 10 strategies, including 4 core areas based on ‘foundation’, ‘inherent’, ‘convergence’, and ‘expansion’. The plan is to invest a total of 172.3 billion won over five years starting next year to stimulate production of 408.9 billion won and create 2,346 jobs.

The first core strategy is to operate ‘Seoul-type Design School’, an online and offline design professional education platform staffed by top-notch instructors. The purpose is to produce field-oriented talent by strengthening the capabilities of new and experienced designers in a customized way.

Design companies have difficulty recruiting skilled personnel due to frequent turnover of designers, while a mismatching phenomenon occurs in which designers have difficulty finding employment in excellent companies due to lack of proper education.

This year, we will first start online education, and from next year, we will launch offline education centered around DDP and Seoul Design Startup Center (near Hongik University Station).

Online education is targeting 1,000 prospective and experienced designers this year by converting professional lectures and domestic and international forums currently being conducted by the Seoul Metropolitan Government into online content.

Starting next year, offline courses with a high-quality curriculum will begin, with world-class designers as well as domestic and foreign professors and experts serving as instructors. Through lectures as well as thorough academic management and practical training in connection with companies and universities, young designers are encouraged to adapt to the industrial field, and experienced designers are provided with opportunities to strengthen their expertise through re-education.

Students can first participate in the design and business competency enhancement program run by the Seoul Metropolitan Government, and are also given the opportunity to participate in overseas markets when promoted to a higher level of level 4 or higher (total levels 1 to 5). After the semester ends, there is also an exhibition of graduation works.

Second, for the first time in Korea, we will introduce ‘Design Company Safety Insurance’ so that small design companies can do business with peace of mind without worrying about delivery, such as loss of sales due to damage or theft, closure or closure of the ordering company, or distribution of similar products. 1,500 companies will be supported for 5 years with the Seoul Metropolitan Government paying 30% of the insurance premiums. It is currently being jointly developed by Seoul City and Shinhan EZ Fire Insurance, and is scheduled to be released as early as the first half of next year.

‘Design Company Safety Insurance’ is a product that covers up to 60% of production costs in case of damage or theft during prototype development or failure to deliver design products. For example, if you pay 1.5 million won (1.05 million won + city 450,000 won), which is 3% of a product worth 50 million won, as an insurance premium, up to 30 million won, which is 60% of the product, is covered in the event of an emergency.

Third, it provides win-win opportunities by linking design companies with manufacturing and technology companies that need design development but are hesitant due to cost. Company matching is divided into three areas: ▴Technology startups, ▴Excellent small and medium-sized companies, and ▴Global promising companies.

(Technology startup) A total of 45 design companies are matched with manufacturing and technology companies over 5 years. The team that formed the consortium will move into the Seoul Startup Hub and receive support from an accelerator program to promote collaboration.

(Excellent Small and Medium Businesses) We select 290 excellent companies with high growth potential, match them with design companies, and support design development costs of 30 to 50 million won for team leaders.

(Global Promising Company) We support the development of overseas markets and local commercialization for 125 teams that collaborate with promising global companies and design companies with exports of more than $100,000.

Fourth, ‘Seoul Design Week’ will be drastically reorganized from an exhibition-centered event to an international business venue. The plan is to develop it into one of the world’s top three design industry fairs, standing shoulder to shoulder with ‘Maison Objet (F)’ and ‘Salone del Mobile (F)’.

‘Seoul Design Week’, which will see changes starting next year, will first significantly increase the holding period and number of participating designers and companies, and will also operate exchange exhibitions with famous overseas market exhibitions. The event venue will also be expanded from DDP to Seongsu, Hongdae, and Gangnam (COEX), and will focus on business such as licensing fairs (intellectual property transactions).

In addition, various projects will be promoted in the fields of foundation, self-reliance, convergence, and expansion to help Seoul take a leap forward as a design-centered city.

An online and offline cluster will be created for designers and design companies in downtown Seoul. Centered around DDP, Hongdae and Seongsu will be used as venues for exhibitions and sales to attract investment, foster design companies, and secure awareness.

The currently established DDP and Seoul Design Startup Center in Hongdae will be revitalized, and a pop-up store measuring approximately 980㎡ will be created in Seongsu by 2026 to be used as a permanent exhibition of design products and a business consultation window.

In addition, Seoul Upcycling Plaza (Yongdap-dong) provides post-incubation, including acceleration, education, mentoring/consulting, and networking, for startups three years after their founding.

An online design platform ‘Seoul D Together (tentative name)’ will also be established. It is a shared space for domestic and foreign buyers, design companies, and designers, providing one-stop support such as information provision, design education, market development, and networking.

‘Design for Planet Seoul’ combines design and cutting-edge technology to solve various social problems such as welfare, transportation, and the environment, researching and developing services to improve citizen convenience, disseminating guidelines to realize Seoul as a carbon-neutral city, and promoting ESG design products. We also run campaigns.

We foster startups with excellent creativity through step-by-step support from startups to professional companies, and support the commercialization of products and services for companies with high growth potential to enhance their internal stability. Through this, the plan is to foster 20 startups with annual sales of more than KRW 1 billion and increase the export ratio from the current 9% to 20%.

Start-up information is provided to prospective entrepreneurs, and customized incubation, such as business model and prototype development, is provided to early-stage start-ups. For companies that have been established for more than three years, we provide support for business model advancement, investment attraction, and overseas expansion.

For 5 years, we will provide productization and distribution support for up to 100 lifestyle design companies across all business stages, as well as help with opening stores in domestic and foreign online shopping malls and pop-up stores.

155 design companies and designers will be selected and provided with opportunities to participate in global exhibitions such as Maison Objet, and will also be supported in developing overseas sales channels.

In addition, 150 design companies that have developed products and services that enhance the daily convenience of the vulnerable will be selected and supported for production, application, promotion, and sales, and 263 companies producing zero-carbon design products will be selected as ‘greenchips’. Use marketing brands to support sales channels.

The creativity of new designers is added to large companies’ products and services, or large company designers consult with early-stage designers to develop 53 new designs.

Collaboration between small business owners and young designers is also supported. Over five years, we will match 1,020 small business owners with young designers to support product production costs and provide opportunities for exhibitions and sales at Seoul design events.

We continuously hold awards for citizens to design Seoul, such as the citizen idea contest that combines creativity and new technology with lifestyle such as street vendors and transportation facilities, the illustration contest using Seoul landmarks, and the Seoul Design ODA to disseminate Seoul public design. Promoting the excellence of Seoul’s design internationally.

In addition, 235 types of Seoul Design goods will be developed over the next five years and launched and sold at Seoul Design Stores located in DDP and Seongsu.

Seoul City Design Policy Director Choi In-gyu said, “Design competitiveness determines the city’s competitiveness, and the design industry is the future food source of Seoul,” and added, “We will lay the foundation for Seoul’s design industry to leap forward internationally through active investment and support for competent designers and design companies.” “Through this, we will regain the reputation of Seoul as the world design capital and city of design creativity,” he said.

Economy Queen reporter Kim Jeong-hyeon photo provided by Seoul Metropolitan Government

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