[StartupRecipe] Two pillars drive South Korea’s climate tech growth

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Two pillars drive South Korea’s climate tech growth

South Korea’s climate tech sector pulled in KRW 286.5 billion ($220 million) through November, with energy and circular economy startups dominating the funding landscape, according to Startup Recipe data.

Energy companies captured the lion’s share of capital, led by Amogy, the Korean-founded, U.S.-based startup that alone raised over KRW 100 billion this year. Hydrogen economy players Hyrium Industry (KRW 15 billion) and water electrolysis firm LightBridge (KRW 4 billion) also landed significant rounds. But strip out Amogy’s outsized raise, and it’s the circular economy sector that’s really driving Korea’s domestic climate tech story.

Circular economy startups showed the most momentum both in deal volume and dollars deployed. Waste management platform RECO led the pack with a KRW 58.5 billion round, followed by activated carbon recycling company Wintech Glovis at KRW 24 billion and AI-powered recycling robot maker Superbin at KRW 14.5 billion. The capital spread fairly evenly across multiple players, a healthy sign for the sector.

Climate data and software startups are also gaining traction as companies face mounting pressure to track and reduce emissions. AI energy software company Crocus raised KRW 17 billion, building energy management startup SEEDN closed KRW 6.5 billion, and corporate carbon management platform Aents secured KRW 3.5 billion.Meanwhile, once-hot agri-food tech, particularly cultured meat, has cooled considerably.

The funding stage distribution signals a maturing market. Series B and later rounds are picking up after years of pre-Series A dominance. But there’s a growing divide: mega-rounds like Amogy and RECO sit alongside a long tail of sub-KRW 1 billion deals.

Private investor interest is getting a boost from aggressive government backing. The government launched a cross-ministerial task force to turn climate tech into a strategic growth sector, with the Net Zero Challenge X program connecting promising startups to private capital and fast-tracking commercialization. Selected companies get regulatory sandbox privileges and public procurement advantages.

The government’s planning a KRW 9 trillion climate tech fund through 2030, which should fuel continued growth in circular economy and energy tech. But Korea still has a unicorn problem: KRW 100 billion-plus rounds and billion-dollar valuations remain vanishingly rare on home turf.

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