Market Insights Financial Capital Raising

Traditional Capital Raising - South Korea

South Korea

The Total Capital Raised in South Korea's Traditional Capital Raising market market is expected to reach US$3.58bn in 2024.
Venture Capital leads the market with a projected market volume of US$3.32bn in 2024.
When compared globally, the United States is set to generate the most Capital Raised (US$159,000.0m in 2024).
South Korea's Traditional Capital Raising market sees a growing interest in private placements among local businesses for strategic expansion.

Key regions: Israel, Brazil, United States, Europe, United Kingdom

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Analyst Opinion

South Korea is experiencing significant growth in its Traditional Capital Raising market, driven by several key factors.

Customer preferences: Investors in South Korea are increasingly turning to traditional capital raising methods to fund their business ventures. This is due to the stability and reliability associated with these methods, as well as the potential for higher returns on investment. Additionally, traditional capital raising allows investors to have a greater level of control over their investments, as they are able to directly invest in specific projects or companies.

Trends in the market: One major trend in the Traditional Capital Raising market in South Korea is the rise of crowdfunding platforms. These platforms provide a way for individuals to invest in a wide range of projects and businesses, often with relatively low minimum investment amounts. This has democratized the investment process, allowing individuals of all income levels to participate in the market. Additionally, crowdfunding platforms have become a popular way for entrepreneurs and small businesses to raise capital, as they can tap into a large pool of potential investors. Another trend in the market is the increasing use of Initial Public Offerings (IPOs) as a capital raising method. South Korean companies are going public to raise funds for expansion and growth, taking advantage of the strong investor appetite for new listings. IPOs provide companies with access to a large pool of capital, allowing them to finance their growth plans and increase their market share.

Local special circumstances: One of the main drivers of the Traditional Capital Raising market in South Korea is the strong entrepreneurial spirit and innovation in the country. South Korea has a vibrant startup ecosystem, with a large number of innovative companies emerging in sectors such as technology, e-commerce, and healthcare. These companies often require significant capital to fund their growth, and traditional capital raising methods provide them with the necessary funds. Additionally, the government has implemented policies to support entrepreneurship and innovation, further fueling the growth of the capital raising market.

Underlying macroeconomic factors: South Korea's strong economic growth and stable financial system are key underlying factors driving the growth of the Traditional Capital Raising market. The country has a well-developed financial infrastructure, with a robust banking sector and a mature capital market. This provides a solid foundation for companies and investors to engage in capital raising activities. Additionally, South Korea's favorable business environment and strong investor protection laws make it an attractive destination for both domestic and international investors. In conclusion, the Traditional Capital Raising market in South Korea is experiencing significant growth, driven by customer preferences for stability and control, as well as the rise of crowdfunding platforms and the increasing use of IPOs. The country's strong entrepreneurial spirit, supportive government policies, and robust financial system are also contributing to the market's development.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on the amount of capital raised, the average deal size, and the number of deals.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use data from OECD, annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, CPI, number of small and medium-sized enterprises (SME), and new businesses registered (number). This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption. The scenario analysis is based on a Monte Carlo simulation approach generating a range of possible outcomes by creating random variations in forecasted data points, based on assumptions about potential fluctuations in future values. By running numerous simulated scenarios, the model provides an estimated distribution of results, allowing for an analysis of likely ranges and confidence intervals around the forecast.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.