[StartupRecipe] Unicorn Funding in Korea Is Drying Up

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#Weekly Funding Overview

[Feb 10~ Feb 14]

Company	Inudustry	Amount	Round	Investors
Tip corporation	Leadership Coaching Platform	-	Grant	TIPS
Hustlers	Smartphone detox service	-	Grant	TIPS
Scarabs	Space	-	Grant	Deeptech TIPS
Robotable	Food Tech	-	Grant	TIPS
Eastern edition	K-Living	3.6 billion	Series A	Korea Investment Partners, Bon Angel Venture Partners, Schmidt, BM Ventures
Mission-driven	Senior community platform	-	Seed	MYSC
Nety	College student event calendar app	-	M&A	Timetree
Magnendo	Medtech	-	Seed	Bass Investments, Kakao Ventures
Muzlive	Mental health	-	Seed	Digital healthcare partners
Solivis	Bettery	12.747 billion		KOSMES
Action	Secondary battery	10 billion	Pre Series A	Mirae Asset Capital, LG Technology Ventures, BASF Venture Capital, Arosa Capital Management, Hunt Energy Enterprises,
Selector		-	M&A	Sonid
Agos	Anti drone	-	M&A	Humantechnology
OQT	Quantum computing	3 billion	Seed	Kakao Ventures, Bluepoint partners
Forparents	Active senior travel service	-	Pre Series A	THE WELLS INVESTMENT, STRONG VENTURES, MYSC
Anchoreer	Recruitment platform	-	M&A	Remember & Company
Welcon systems	DC SERVO DRIVE	2 billion	Series A	Quad Ventures, Hana Ventures
Ascent Korea	Marketing	4 billion	Pre Series B	NH Investment & Securities, NH Venture Investment, Shinhan Venture Investment
Moers	Interactive Entertainment	-	TS Investment
Geogrid	Building purification system	-	Seed	500global
Gemgem Therapeutics	AR Game	-		Smilegate Investments, MYSC
Livsmed	Medical device	30 billion	Pre IPO	BRAIN ASSET MANAGEMENT
PPMI	Pet healthcare	3 billion	Pre Series A	AJD
Enkorstay	Foreigner rental platform	2 billion	Pre Series A

#Major Funding

• Medical device startup LivesMed, which specializes in developing laparoscopic surgical instruments, has secured KRW 30 billion in pre-IPO funding, bringing its total investment to KRW 50 billion. The company plans to use the funds to strengthen its remote marketing strategy in response to the COVID-19 era and to diversify its product lineup.
• ACT-ion Battery Technologies, a spin-off from the U.S. energy company Hunt Energy Enterprises, has secured KRW 10 billion in investment. The company has developed a continuous manufacturing process that overcomes challenges in conventional cathode material production and enables the high-speed, high-efficiency production of various high-performance single-crystal cathode materials.

#Trend Analysis

Unicorn Funding in Korea Is Drying Up

The South Korean startup ecosystem, once a hotbed of rapid growth and substantial investment, is experiencing a significant slowdown in unicorn creation and funding. In 2024, only two companies, Ably Corporation and Rebellions, attained unicorn status, a stark decline compared to the approximately ten new unicorns minted annually during the 2021-2022 boom. More worrisome than the reduced number of new unicorns is the substantial decrease in investment activity among existing ones.

An analysis of 20 major South Korean unicorns (excluding those from 2024) reveals that only four—Musinsa, Kurly, Korea Credit Data, and Kream—secured new funding rounds between 2023 and 2024. While Karrot (Danggeun Market) facilitated a secondary share sale, the majority of established unicorns have struggled to attract fresh capital, with their most recent funding rounds coinciding with their initial unicorn valuations.

This funding drought reflects the global investment downturn, making it considerably more challenging to secure significant capital. Consequently, some companies are strategically postponing fundraising efforts, particularly in the face of decreasing valuations. While some startups have successfully transitioned to profitability, a considerable number of unicorns continue to operate at a loss.

The IPO landscape for unicorn startups remains limited. While Shift Up, APR, and Fadu have successfully gone public, major players like Yanolja, Kurly, and Viva Republica, once slated for global IPOs, have adopted a more cautious approach.

Historically, South Korea’s startup ecosystem has been fueled by rapid expansion and substantial investment inflows. However, the current emphasis on profitability over external growth represents a fundamental shift. While this transition could ultimately benefit the ecosystem, fast-growing startups typically rely on shorter investment cycles. Protracted periods without new funding could hinder growth and stifle innovation.

With both Korean and international venture capital firms forecasting an even more challenging investment climate in 2025, the sustained slowdown in unicorn funding raises concerns about broader ramifications for South Korea’s startup ecosystem. A prolonged investment drought risks stagnation within this once-vibrant sector, highlighting the critical need for adaptive strategies to navigate the evolving market dynamics.