Startups in South Korea - statistics & facts
The South Korean startup scene has undergone tremendous growth over the past decades, driven by robust venture capital funding and government financing programs. The technology sector, in particular, has seen a remarkable surge in startup activity, leading to the emergence of major players such as Coupang and Kakao. However, despite these positive developments, there are still some areas within the startup ecosystem that require improvement.
The number of new businesses has almost doubled in the last ten years, while the number of technology-intensive small and medium-sized enterprises (SMEs), also known as venture companies or high-potential ventures, grew from about 10,000 in 2005 to around 32,000 in 2022. In 2023, South Korea had a total of 23 unicorns, including the fintech startup Viva Republica, which operates the digital payment platform Toss, and Kurly, one of the most widely used grocery delivery services in South Korea.
The South Korean startup landscape
In the 1980s, South Korea witnessed the rise of its first startups, driven by the rapid development of computer technology and the widespread adoption of the internet. During the late 1990s to the early 2000s, South Korean startups experienced a period of substantial expansion, marked by the emergence of numerous innovative enterprises spanning diverse sectors. However, this era was not without its challenges. The early 2000s saw the bursting of the "dotcom bubble (internet bubble)," leading to a recession that had a substantial impact on the startup ecosystem. In response to the economic downturn, the government undertook significant measures to provide support for self-employed individuals, aiming to foster a more conducive and supportive environment for businesses. Since then, South Korea has not only recovered from the setback but has also experienced remarkable growth in its startup ecosystem.The number of new businesses has almost doubled in the last ten years, while the number of technology-intensive small and medium-sized enterprises (SMEs), also known as venture companies or high-potential ventures, grew from about 10,000 in 2005 to around 32,000 in 2022. In 2023, South Korea had a total of 23 unicorns, including the fintech startup Viva Republica, which operates the digital payment platform Toss, and Kurly, one of the most widely used grocery delivery services in South Korea.
