On Apr. 9, the neighborhood of Sillim-dong in Gwanak-gu, Seoul, South Korea, known as Exam Village or ‘goshichon,’ historically a residence area for civil service examinees, has undergone a transformative shift. The area, once densely populated with small private study rooms and PC cafes, now hosts three Venture Startup Centers. Gwanak-gu took over three buildings previously used for study facilities to launch these centers early last year, aiming to nurture and support startups.
A Gwanak District official said, “After the abolition of the judicial examination in 2017, the area was in decline. To revive it, we started a project to support entrepreneurship, and now it’s bustling with young entrepreneurs in their 20s and 30s, earning it the new nickname ‘Startup Village.’”
The transformation is substantial. Over the past four years, nine startup support centers established by the local government and major corporations have opened their doors. This influx has attracted 89 companies to the area, bringing the total number of employees to 797.
A famous six-story building that used to be a coaching institute for exams at the entrance of the alley has been converted into a startup hub by major corporations. In 2021, KB Financial Group and KT launched their innovation centers, ‘Innovation Hub’ and ‘KT Bridge Lab,’ converting these spaces into shared offices for startups. Currently, 17 startups, including ‘LVIM,’ which operates the popular ‘London Bagel Museum’ and ‘Mewolmejoo,’ which offers a subscription service for traditional Korean alcoholic beverages, are tenants. A representative from KB Financial Group said, “We provide not only space but also assistance with investment attraction and business consulting for startups.”
Another building in goshichon is home to DinnoLab, a startup incubation center opened by Woori Financial Group in 2021. It houses 14 startups in diverse fields, such as AI, healthcare, and mobility.
As the area shifts to a startup hub, new businesses such as dessert cafes and salad bars are opening, attracting a different crowd. A local cafe owner said, “A few years ago, it was mostly students, but now we see many customers coming in with laptops for meetings.”
The metamorphosis of Sillim-dong goshichon began in 2020 when the Gwanak District and Seoul National University established a startup support center. An official from the district said, “We started with a vague hope that, much like Silicon Valley is associated with Stanford University, Sillim-dong, being near Seoul National University, could become a magnet for young talent. This hope has proven correct, as the area has transformed significantly within three to four years.”
The startup village expanded rapidly following the introduction of the Sillim Line light rail in 2022, significantly improving accessibility. Proposed initially as ‘Goshichon Station,’ it was renamed ‘Seoul University Venture Town Station.’ Since its opening, daily ridership has increased from 7,200 to over 10,000 passengers. Leveraging this boom, Gwanak District and Seoul National University have consolidated various startup centers into a new entity dubbed ‘S Valley.’
Startup representatives cite low rental costs, convenient transportation, and proximity to Seoul National University as major advantages. Park Sung-chul, a 38-year-old director of a robotics startup’ Creo Korea’ that moved from Seongsu-dong last year, said, “The rent for a 66-square-meter office in Seongsu-dong exceeded $1450 (2 million won) per month, while here it’s only $254 (350,000 won) for a 99-square-meter office.”
Lee Sung-hwan, a 28-year-old head of the artist management startup ‘Red Slippers,’ which relocated from the Hongdae area near Hongik University Station in Mapo-gu, said, “Before the Sillim Line opened, there was a perception that this was an inconvenient outskirts area. Now, it’s only 16 minutes to Yeouido and 24 minutes to Gangnam.”
