Seoul has significantly advanced its position in the global startup ecosystem, securing the 8th position worldwide in Startup Genome’s 2025 Global Startup Ecosystem Report. This achievement marks its highest-ever ranking, maintaining a presence within the top 10 for two consecutive years and surpassing other major Asian cities like Singapore and Tokyo. The city’s notable strengths are attributed to its leading position in knowledge accumulation (1st globally) and robust funding environment (5th globally, 1st in Asia). Seoul aims to enter the global top 5 and foster 50 unicorn companies by 2030.
The Korean government and Seoul City are actively promoting startup growth through a variety of strategic initiatives and support programs. A delegation of 26 K-startups recently participated in Viva Technology 2025 in Paris, Europe’s largest startup exhibition, showcasing innovative solutions. Participating companies included Morfing Eye with AI-based water pipe inspection robots, Studio Lab focusing on AI-based photo automation, and Pi-a Space developing AI intelligent CCTV analysis systems. Furthermore, sector-specific innovation hubs are being established and expanded. The newly opened Seoul Beauty Hub at Dongdaemun Design Plaza is designed to provide comprehensive, one-stop support for 100 K-beauty small and medium-sized enterprises (SMEs) in areas such as design, distribution, and export. Similarly, Seoul BioHub in Hongneung serves as a crucial platform, supporting 21 promising bio-startups through incubation, expert mentoring, investment linkage, and access to shared research facilities. Examples include Cureverse, developing treatments for intractable brain diseases, and Galaxe, with its AI-based drug design platform. The government’s “Baby Unicorn” program, which aims to nurture companies towards a pre-unicorn valuation of over 100 billion KRW, has demonstrated significant success. Between 2020 and 2024, 300 selected companies achieved an average revenue increase of 137.6% and collectively attracted 2.49 trillion KRW in follow-up investments. The Seoul Startup Hub Guro, an advanced manufacturing startup hub, is also under construction, with completion expected by 2029.
Despite a challenging investment climate in May 2025, which saw total domestic startup investment decrease to 271.1 billion KRW—the second lowest amount this year and even lower than the figures from 2020—the healthcare and automotive/mobility sectors continue to attract substantial capital. Several companies secured significant funding rounds:
- MediQuarters, a brand e-commerce platform, successfully raised 60 billion KRW in Series D funding.
- Flex, an HR technology startup, secured 10 billion KRW.
- Nano Solution, a startup specializing in new nanomaterial technology, received 10 billion KRW.
- BSP, a semiconductor equipment company, also attracted 10 billion KRW in Series A funding.
- Robos, known for its slaughter automation robots, raised 25 billion KRW in Series B funding.
These investments highlight ongoing interest and growth in cutting-edge technologies, including AI, robotics, biotech, and mobility, which are recognized as Seoul’s strong industry sectors.
While significant progress has been made, challenges such as gender diversity within the startup ecosystem persist. A recent report indicates that women comprise only 13.7% of startup executives and 25.3% of managers. Furthermore, a notable gender pay gap exists, with women’s median salary being 77.4% of men’s, a disparity that widens as careers progress. This is despite findings that companies with a higher ratio of female management and executives exhibit superior business performance. To address various industry needs, initiatives like free legal consulting sessions supported by major law firms are being offered to startups. Programs such as the “AI Collabo Open Ground” are also actively connecting AI startups with established companies to facilitate Proof of Concept (PoC) opportunities and potential funding. Moreover, global technology companies are expanding their footprint, with Naver establishing Naver Ventures in Silicon Valley and Toss hosting a global recruitment event in the United States to attract top talent in AI and data fields.
