[StartupRecipe] South Korea Reaches 27 Unicorns

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South Korea Reaches 27 Unicorns

South Korea added four new unicorn companies in 2025, bringing the nation’s total to 27 billion-dollar startups as venture capital investment surged to its second-highest level on record, according to data released by the Ministry of SMEs and Startups.

The newly minted unicorns—Rebellions, FuriosaAI, Benow, and Galaxy Corporation—represent a significant shift in the country’s startup landscape. Unlike previous years when consumer-facing platform companies dominated unicorn creation, the 2025 cohort spans AI semiconductor design (Rebellions, FuriosaAI), cosmetics manufacturing (Benow), and AI-powered entertainment technology (Galaxy Corporation)

Total venture capital investment reached KRW 13.6 trillion in 2025, a 14.0% increase from the previous year and the second-highest annual total behind 2021’s KRW 15.9 trillion peak. Deal volume hit an all-time high of 8,542 transactions, reflecting broad-based activity across the ecosystem.

Investment momentum accelerated sharply in the second half, with KRW 7.9 trillion deployed compared to KRW 5.7 trillion in H1. Of the year’s KRW 1.7 trillion growth, KRW 1.4 trillion occurred in the latter six months, signaling renewed investor confidence.

New venture fund formation surged 34.1% to KRW 14.3 trillion, with private sector investors contributing KRW 11.5 trillion—representing 80% of total capital raised. Policy financing accounted for the remaining KRW 2.7 trillion. The private sector’s dominant role underscores the ecosystem’s maturation beyond government-dependent funding.

Second-half fund formation proved particularly robust, reaching KRW 7.9 trillion—a 45% increase compared to the same period in 2024.

ICT services attracted the largest share of investment at 20.8%, followed by bio and healthcare (17.4%) and electrical, machinery, and equipment (14.6%). These three sectors collectively captured 52.8% of all venture capital deployed.

Among the nation’s 27 unicorns, e-commerce companies remain most numerous with eight, followed by three each in cosmetics and fintech, and two each in AI semiconductors, data analytics, travel and accommodation, and cloud infrastructure. The average journey from founding to unicorn status spans 7 years and 8 months.

The emergence of AI semiconductor unicorns alongside continued strength in fintech, data, and cloud services suggests South Korea’s venture ecosystem is evolving beyond consumer platforms toward deeper technology infrastructure—a transition that could strengthen the country’s position in global innovation markets.