The fire at Korea’s National Information Resources Service in Daejeon has become more than a technical disruption—it has now become a crucial stress test for the country’s digital infrastructure. Because for startups and SMEs that rely on government-backed systems such as Bizinfo Plus (G4B), this data center fire outage underscores how dependent Korea’s innovation ecosystem has become on centralized data hubs. Not only that but this incident also highlights growing concerns around resilience, redundancy, and business continuity in an increasingly digital economy.

Emergency Response for Daejeon Data Center Fire: What Happened

On September 26, a fire broke out in the fifth-floor server room of the National Information Resources Service (NIRS) in Daejeon during a lithium battery replacement. One person sustained minor injuries, and nearly 384 battery units were destroyed. By government estimates, the fire forced the shutdown of 647 administrative IT systems, affecting a wide range of online public services.

The Ministry of SMEs and Startups (MSS) immediately activated a 24-hour emergency response system. Urgent checks confirmed service disruptions in Bizinfo Plus (G4B), a core platform supporting SME and startup financing and administration. Alternative access sites were posted on the MSS homepage, and a complaints channel was set up for affected users.

How a Data Center Fire Shook Korea’s SME Digital Backbone

Beyond its function as an administrative tool, Bizinfo Plus has become a crucial entry point for thousands of SMEs and startups to access funding, guarantees, and regulatory services. Its disruption illustrates the vulnerability of Korea’s startup ecosystem to centralized digital failures.

As Korea positions itself as a global innovation hub, events like this expose systemic risks: single-point dependencies in national data infrastructure, underdeveloped redundancy measures, and potential bottlenecks for policy-driven startup support.

The fire also raises questions about how digital infrastructure resilience will factor into future government budgets and strategic initiatives.

Inside the Government’s Emergency Response

An MSS official noted,

“We will operate a 24-hour monitoring system until the situation is resolved, ensuring strict oversight through the control center. We will also continue to coordinate closely with the Ministry of the Interior and Safety and the NIRS to strengthen response measures.”

The ministry emphasized that program implementation will continue without disruption, with partner agencies engaged to build contingency solutions. The rapid response, officials said, was designed to maintain stability for SMEs and startups during the outage.

Startup Ecosystems and the Global Stakes of Digital Resilience

The Daejeon data center fire outage has now become a wakeup call, turning into both a warning and an opportunity for Korea’s startup ecosystem. It highlights the urgent need for digital resilience in government platforms that serve as lifelines for SMEs and founders. In global comparison, ecosystems such as Singapore and Israel have prioritized redundant infrastructure to safeguard continuity in times of crisis.

Korea’s challenge now is to ensure that its rapid digitalization does not outpace its ability to manage infrastructure risks. Strengthening redundancy, decentralization, and public–private coordination could help the country transform this setback into a chance to reinforce trust in its innovation backbone.

What Korea Must Learn to Secure Its Innovation Future

In the end, the Daejeon fire eventually exposed how fragile centralized digital systems can ripple across the broader economy. And for startups and SMEs, it underscored the importance of continuity planning and highlighted the risks of depending solely on government infrastructure.

Therefore, as Korea doubles down on becoming a top-tier global innovation hub, building resilient, distributed, and secure digital infrastructure must become a policy priority. The outcome of this incident will not only affect confidence in government services but also determine how global investors, founders, and partners view Korea’s readiness to anchor a sustainable innovation ecosystem.

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