[StartupRecipe] 2025 Outlook: Korean VCs Predict Tougher Times Ahead

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#Weekly Funding Overview

[Jan. 6~ Jan. 10]

Company	Inudustry	Amount	Round	Investors
Seoul Gaok	Proptech	-	Grant	TIPS
Toad	Proptech	-	Grant	TIPS
ZeroOne	Food waste management	-	Grant	TIPS
SHMD	Healthcare	-	Grant	TIPS
ECNE	Webnovel platform	-	Grant	TIPS
BCDTech	By-product capture decomposition	-	Grant	TIPS
Kimu Studio	Social company	-	Grant	TIPS
Lauren choo company	Non alcohol	-	Grant	TIPS
One Cup	Proptech	-	Grant	TIPS
Through the Layer	AI IDOL	-	Grant	TIPS
Cookie Place	Commission Brokerage Platform	-	Grant	TIPS
HLife	Senior care	-	Grant	TIPS
Theonion	Foodtech	-	Grant	TIPS
Searchlight AI	Career platform	-	Grant	TIPS
Farmkit	Foodtech	-	Grant	TIPS
Blue Lions	Food	-	Grant	TIPS
VisionAI	Mobile access	-	Grant	TIPS
Vet Place	Vet platform	-	Grant	TIPS
DailyPay	Fintech	-	Pre Series A	Yukyung PSG Asset Management, Primer
Bonjac	Beauty	2.5 billion	Pre Series A	Aju IB Investment, Future Play, Eugene Asset Management
Amber Road	Manufacturing AI Solutions	2 billion	Pre Series A	Stonebridge Ventures, SparkLab
INVAIZ	AI Assistant	-	Seed	Seoul Techno Holdings
Unsure group	Beauty	-	Seed	Y&Archer
Textway	Knowledge Management	-	Seed	Y&Archer
Dr.Diary	Healthcare	7.7 billion	Pre IPO	NH Venture Investment, Daily Partners, Solider Investment, Handok, Hyundai Marine & Marine Insurance
4dayworks	Camping app	-	Seed
Intraw	Interior contest platform	-	Seed	Seednpartners
Closer Labs		-	Seed	Spring camp, primer
ARCH SEOUL	QR Order solution	-	Series A	SK shieldus
TIDEPOOL	Marine	-	Series A	Future Play, Bon Angels Venture Partners
UHC	Hospitality	5 billion		LB Investment
Funnytech21	Healthcare	-		formeng
East Movement	Local content	-	Seed	MYSC
Exosphere Labs	Security	-	Series A	Mirae asset capital
SC Solution Global	Leak detection solution	2.5 billion	Series A	Inopolis Partners, InterValue Partners
Reverselab	Bus sharing	-	M&A	the swing
Maihub	Healthcare	4.3 billion	Series A	Korea Investment Partners, Hana Ventures, Big Basin, Schmidt, Digital Healthcare Partners
PulseAd	adtech	2 billion	Pre Series A	Smilegate Investments, Bon Angels Venture Partners
Ratel semiconductor	Power Management ICs	2.1 billion	Seed	Ulsan CCEI
IDCITI	Smart City	2 billion	Series A	Ubiquitous Investments, Honest Ventures
Platfos	Mobile Coupon	-	Series A	IBK Industrial Bank, Infobank, Hyosung Ventures
Sas	Semiconductor	-	Seed	ENSL Partners
Lydia AI	Digital Healthcare	-
Legalcare	Legal tech	2 billion	Pre Series A	Hyundai Investment Partners, Reventures, Rowe Partners
GenKOre	Gene Therapy	10 billion	Series A Bridge	Intervest
DK Finechem	Customized Additives	-	Seed	500global

#Major Funding

• Genkore has raised 10 billion KRW in bridge investment, bringing its total investment to 30.7 billion KRW. Founded in 2019, the startup develops gene therapy drugs using gene scissors technology, which has recently been designated as a national strategic technology. The company is currently preparing for a KOSDAQ listing.Dr. Diary Attracts Pre-IPO Funding
• Dr. Diary has secured 7.7 billion KRW in pre-IPO investment, raising its cumulative investment to 24.7 billion KRW. Established in 2016, the company develops customized health management apps for individuals with chronic diseases such as diabetes. With this new funding, Dr. Diary plans to expand its business to address other chronic conditions.UHC Raises Significant Investment
• UHC has raised 5 billion KRW in investment. Founded in 2017, the company operates over 20 hotels in various locations, including Myeongdong (Seoul), Haeundae (Busan), and Osaka (Japan). Following this investment, UHC’s enterprise value has been recognized at 65 billion KRW. The company intends to use the funds for international expansion in Japan, China, and Thailand, as well as to launch its own app.

#Trend Analysis

2025 Outlook: Korean VCs Predict Tougher Times Ahead

The startup investment landscape in South Korea is bracing for a tougher year ahead, according to a recent survey conducted by Startup Recipe among 20 leading Korean accelerators and venture capital firms. The survey, which focused on investors active across seed to growth-stage startups, revealed widespread concerns about a challenging environment in 2025, with most respondents predicting conditions to remain static or deteriorate compared to 2024. These projections stem from a confluence of unstable domestic and international economic factors.

Investors painted a bleak picture of 2024, assigning an average score of 2 out of 5 to both the investment environment and their overall investment satisfaction. Although 2024 marked a slight improvement over the severe downturn of 2023, the recovery fell short of expectations. The struggles were evident across all investment stages, with a pronounced polarization between thriving and faltering startups. Early-stage investors, in particular, voiced difficulty in identifying promising new ventures, a critical concern for sustaining long-term ecosystem growth.

Despite these challenges, most firms maintained their investment levels in 2024, with only a minority opting for cutbacks—primarily reductions of around 10%. There were, however, pockets of optimism. Deep tech startups, particularly those in the semiconductor sector, made significant strides in expanding their global footprint. Yet, not all trends were positive. Concerns emerged over a potential bubble forming in the artificial intelligence (AI) sector, as some investors warned of “AI washing” — exaggerated claims of AI integration to attract funding.

AI startups continue to dominate investor interest, with over 90% of investors identifying them as a priority irrespective of market conditions. Following AI, sectors like digital healthcare, climate tech, manufacturing, and biotech ranked high on investment agendas. Investors noted particular opportunities in industries where South Korea possesses a competitive edge, such as beauty and advanced manufacturing, alongside global mega-trend sectors. Conversely, areas like EdTech, FinTech, and PropTech saw waning investor enthusiasm.

The survey also highlighted grim prospects for the IPO and M&A markets. investors assigned a mere 1 out of 5 to the 2024 IPO market, reflecting continued stagnation, and predicted similar struggles in 2025. Late-stage investors expressed apprehensions about cautious foreign capital inflows, compounded by geopolitical uncertainties, including the possibility of a Trump presidency in the U.S.

Opinions on the role of government in this turbulent period were sharply divided. While some investors called for minimal intervention and reliance on market mechanisms, others advocated for proactive measures. These included increasing mother fund budgets, expanding overseas programs for startups, stimulating exit markets, and pursuing regulatory reforms. A consensus emerged on the need for targeted government support to revitalize the sector.

Looking ahead, the investment outlook for 2025 is overwhelmingly pessimistic. Not a single respondent offered a positive forecast for the coming year. Heightened uncertainties at home and abroad are expected to drive a defensive and conservative approach among investors. Both public and private markets are anticipated to grapple with weak sentiment, though some early-stage investors remain optimistic about sustained or increased funding for very early-stage startups. For late-stage startups, however, the challenges appear more acute, with concerns over the availability of foreign capital and broader economic headwinds.

As for the timing of a market recovery, most investors expect conditions to improve only by 2026. A majority predict a rebound in the first half of 2026, while 32% foresee recovery delayed until the latter half of the year. Until then, the ecosystem faces a prolonged period of cautious, defensive positioning amid mounting economic and political uncertainties.