New venture capital investments South Korea 2011-2023

In 2023, the value of venture capital investments in South Korea amounted to approximately 5.4 trillion South Korean won, a decrease from about 6.8 trillion won in the previous year. Venture capital refers to financial resources provided by investors to startups and venture businesses with strong growth potential. The volume of venture capital investments in South Korea has increased more than threefold over the past ten years. The information and communications technology (ICT) sector received the highest amount of venture capital, followed by the distribution and service sectors.

Startups in South Korea

Backed by strong venture capital funding and government financing programs, the South Korean startup landscape has grown tremendously over the last few years. The number of new companies has almost doubled in the past two decades, while venture businesses, which are mostly technology-intensive small and medium-sized enterprises (SMEs), have more than tripled within the last 15 years. The number of South Korean startups valued at more than one billion U.S. dollars - the so-called unicorns - has also increased from just three in 2017 to 23 in 2023.

The success of big South Korean startups

Some South Korean startups, such as e-commerce giant Coupang, have grown into big players. The company quickly became one of the leading online retailers, with sales revenue jumping more than 400-fold since its founding in 2010. Coupang’s online services, such as 'rocket delivery,' which promises delivery within 24 hours, have enjoyed great popularity, especially following the outbreak of the COVID-19 pandemic.