[StartupRecipe] Investment in Korean Women-Led Startups Shows Growth, But Challenges Remain

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#TREND ANALYSIS

Investment in Korean Women-Led Startups Shows Growth , But Challenges Remain

Investment in Korean women-led startups reached 47.1 billion won in the first half of 2025, an increase from the 41.9 billion won secured in the same period last year.However, a closer look at the data reveals persistent challenges. Despite the numerical increase, the share of total startup investment captured by women-led enterprises remains at a modest 2%, indicating they still represent a very small segment of the market.

A key characteristic of these investments is their concentration in seed or pre-Series A stage companies. Most of the funding is directed towards early-stage ventures, suggesting difficulties in securing later-stage capital.

Only a handful of companies managed to attract substantial investment. Sizzle, a manufacturing firm, led the pack with an investment exceeding 10 billion won. Other notable recipients included CellTa Square (9.2 billion won), Moovin (4 billion won), and Podl (3.5 billion won). The overwhelming majority of the remaining investments were smaller, ranging from hundreds of millions to several billion won, with many amounts undisclosed. There were no mega-investment cases in the first half of 2025, unlike the 2023 deals for companies like Kurly (120 billion won) and MusicCow (60 billion won).

Nearly half of all women-led startups receiving investment are concentrated in consumer technology, encompassing sectors like beauty, fashion, pet care, wellness, and other lifestyle-related services, accounting for 40% of the total. While female entrepreneurship is robust in these consumer-facing areas, expansion into technology-based fields continues to be limited.

Although some women-led companies are venturing into high-growth potential technology and B2B sectors such as software and healthcare, their overall proportion remains low. Furthermore, follow-up investments beyond Series A are rare. With the exception of a few companies like Sizzle (which is pre-IPO), most women-led startups continue to rely on seed investment or government support programs like TIPS.

A positive development in the first half of 2025 was the emergence of two merger and acquisition (M&A) cases. Lifestyle brand Nalna and oral IoT bio-capsule company Ulike Korea achieved investment recovery through M&A, providing crucial exit opportunities for investors.

While the numerical increase in investment for women-led startups is encouraging, the market still faces structural issues. The strong concentration in early-stage funding without significant large-scale investments limits their overall market presence. While initial funding through programs like TIPS is relatively accessible, the transition to sustained private investment and advanced growth stages remains a significant hurdle.

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