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[BUSINESS] · South Korea · 2 sources

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Gwangju AI cluster sees revenue surge despite declining new employment

Companies within the Gwangju AI Industrial Convergence Cluster are experiencing a trend of ‘jobless growth,’ where significant increases in revenue and company numbers are not translating into local employment. Data provided by the Ministry of Science and ICT and the National IT Industry Promotion Agency (NIPA) shows that new employment at the Gwangju AI Startup Camp and the cluster's startup building has declined for three consecutive years.

Between 2024 and 2025, the number of resident companies grew approximately 2.5 times, from 61 to 150, and total revenue surged 3.8 times from approximately 98.7 billion KRW to 377.2 billion KRW. Despite this expansion, new hiring dropped by nearly 40%, falling from 98 to 59 people. Since 2022, new employment has decreased by 59%.

Representative Kim Nam-guk of the Democratic Party emphasized that while the growth of AI companies and revenue is positive, the ultimate goal of fostering the AI industry should be to revitalize the local economy and create opportunities for young people. He called on the government and local authorities to analyze the causes of the declining employment and strengthen performance management systems to ensure industrial growth leads to high-quality job creation.

Entities

Gwangju AI Industrial Convergence Cluster · Kim Nam-guk · Ministry of Science and ICT · National IT Industry Promotion Agency