[StartupRecipe] S. Korea Sees Decline in Startup Numbers Why?

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#Weekly Funding Overview

[Feb 24~ Feb 28]

Company	Inudustry	Amount	Round	Investors
JLT	Robot Automation	23 billion	Series B	Stonebridge Ventures, Partners Investments, SJ Investment Partners, Millennium New Horizons
The White Communication	AI Counseling Solution	10 billion	Pre IPO	KDB Korea Development Bank, UTC Investment Daekyo Investment, Pathfinder H, Investor
ElpisCell Therapeutics	Cell Therapeutics	5 billion	Pre-SeriesA Bridge
Build Up Labs	Commerce AI	-		Unboundlab
23rd Century Kids	Enter-tech	-	Grant	TIPS
LIVSMED	Medical device	6 billion	Pre IPO	NH Investment & Securities
Glorang	Edtech	2 billion		Ice cream media
Gongdo	Edtech	-	Pre Series A	Chungbuk CCEI, Alpha Brothers
Mediology	AI Medical Solution	-	Grant	TIPS
Impact AI	AI-powered Ad Budget Optimization and Analysis Solution	-		Big Move Ventures
Genesis Lab	AI Video Interview Solution	-	Series B Bridge	Korea Investment Partners
Taming Lab	Secondhand Luxury Watch Platform	-	Seed	Kakao Ventures, Mashup Ventures, Seoul National University Startup Network Angel Club
Wemeetmobility	Logistics	-		NAVER Cloud
NEPLA	Legal tech	-	Seed	Postech holdings
OWL SOCIETY	K-Fashion	-	Seed	Kingo Spring
IHW	AI Semiconductor	12 billion	Pre Series A	Mirae Asset Venture Investment, Woori Venture Partners, DSC Investment, HB Investment
Raywatt	Medical devices	8.5 billion	Series A	Korea Investment Partners, IBK Industrial Bank, SBI Investment, L&S Venture Capital, Investment, Odaston Investment
Matari		-	Pre-Seed	ZDVC
Newrizon	Next-generation Hybrid Filter Material	-		IMM Investment
Nurie AI	AI Enterprise Solution	-	Grant	Deeptech TIPS
LIVIT	Carbon Emission Management Solution	-	Pre Series A	Daekyung Technology Holdings, Y&Archer, Honest Ventures
Forbeaut	Haircare Brand	-		Mark and Company
BALAAN	Luxury Fashion Platform	15 billion		Silicone Two
Blackbox studio	Webtoon Short Animation Production	-	Seed	Blue Point Partners
GreenDA	Eco-friendly Energy	-		Cnttech-DB
NEPLA	Legal tech	-	Grant	TIPS

#MAJOR FUNDING

• JLT secures 23 billion KRW in funding, bringing total investments to 28.1 billion KRW. Founded in 2019, this startup provides factory automation solutions. The funds will be used to enhance welding automation solutions, develop next-generation robot automation solutions, and create automated robotic solutions for recycling waste batteries.
• Luxury platform Balaan raises 15 billion KRW in investment. The company will receive an initial 7.5 billion KRW, followed by an additional 7.5 billion KRW. The funds will be used to strengthen global business competitiveness and develop new business ventures.
• White Communication secures 10 billion KRW in funding. Established in 2016, this AI integrated consulting solutions company plans to use the investment for IPO preparation, AI business expansion, and global expansion. The company aims for an IPO in the second half of 2026.

#TREND ANALYSIS

The number of startups in South Korea has decreased by 4.5% year-on-year, totaling 1,182,905 in 2024. This decline is attributed to a combination of factors, including a sluggish domestic and global economy, persistent three highs (high interest rates, high exchange rates, and high inflation), weakened consumer spending, and ongoing demographic shifts such as low birth rates and an aging population.

Notably, the number of new businesses declined by 2.9% across all age groups except for those aged 60 and above. The Ministry of SMEs and Startups (MSS) published these findings in its 2024 Startup Trends report.

On the growth side, Personal Services have expanded as demand for elderly and childcare services increases. Similarly, Professional, Scientific, and Technical Services have benefited from the diversification of advertising channels such as generative AI, short-form commerce, OTT platforms, and retail media, leading to a rise in new advertising agencies and management consulting firms. The Business Facilities Management, Support, and Leasing Services sector has also seen growth, driven by heightened demand for building maintenance and cleaning services.

Conversely, sectors facing declines are largely impacted by economic downturns and changing consumption patterns. Wholesale and Retail Trade has suffered despite the continued growth of online commerce, with economic slowdowns, competition from C-commerce, and disruptions such as the TMON-Wemakeprice incident playing key roles. Accommodation and Food Services have struggled due to rising costs, weakened consumer spending, and intensifying competition.

Similarly, Real Estate has seen fewer new businesses amid high interest rates, rising construction costs, and a sluggish market. Information and Communications businesses, despite the global popularity of K-content, have declined due to rising production costs, conservative investments, and rapid technological shifts. Manufacturing has continued to shrink under the weight of increasing raw material costs, fluctuating exchange rates, and the growing dominance of digital industries. Finally, Arts, Sports, and Leisure businesses have seen a decline, with karaoke rooms and study cafes struggling due to shifting consumer trends and a shrinking student population.

Meanwhile, the number of technology-based startups in 2024 reached 214,917, a decrease of 2.9% (6,519 businesses) compared to the previous year. However, the proportion of technology-based startups relative to the total number of startups increased by 0.3 percentage points, reaching a record high.

#MORE NEWS

S. Korea Aims to Foster 5 AI Unicorns by 2027

S.Korea Blocks Deepseek Downloads over privacy concerns

Korea-Japan Launch KRW 29B Venture Fund

• Balaan Secures KRW 15B to Fuel Global Expansion
• JLT Raises KRW 23 Billion for Robotics Automation
• 2nd Korea-Japan Bio Ecosystem Roundtable held in Tokyo