[StartupRecipe] Korean Luxury Platforms Struggle Amid Falling Valuations

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#Weekly Funding Overview

[Mar. 3~ Mar. 7]

Company	Inudustry	Amount	Round	Investors
Seadronix	AI-powered ship	15 billion	Series B	LB Investment, KB Investment, Korea Development Bank
GenGen AI	AI synthetic data	12 billion	Series A	Korea Aerospace Industry
Karis bio	Bio	11.5 billion	Series B	Korea Development Bank, Premier Partners, DevSisters Ventures, Azure Ivy Investment, Korea Venture Investment, Yonsei Bio Health Technology Holdings, Yonsei University Technology Holdings
Solum materials	Materials	5.6 billion	Series A	Ubiquoss Investment
Futurescole	Online class	5 billion	Series A	Murex Partners, TBT Partners
Innovaid	Digital Dentistry	5 billion	Series A	Murex Partners, Wonik Investment Partners, TransLink Investment, Big Basin Capital
IDCITI	Smart city	2 billion	Series A	Ubiquoss Investment, Honest Ventures
Portal301	Robotics	1.5 billion		Stonebridge Ventures, Schmidt
Abetter	Ecommerce solution	1 billion	Pre Series A	TimeWorks Investments
Theplato	AI note taking	800 million	Seed	Smilegate Investments, Mashup Ventures
Ulikekorea	Animal Healthcare	-	M&A	Metech Holdings
i-ESG	ESG	-	Series A	Envisioning Partners, Springcamp
Omnicoat	Laser printing	-	Pre Series A	Postech Holdings
Puri-science	PVA brush	-	Grant	TIPS
Howthree	Virtual artist content	-	Seed	Wow Partners
Wdtt	Senior care	-	Seed	Mashup Ventures, Digital healthcare partners
Iclo	Dental	-	Seed	MYSC
ATLO	AI Robotics	-	Seed	Strong Ventures
Cidermics	Contents	-		Usalliance

#MAJOR FUNDING

• Contoro Robotics has raised KRW 17.5 billion in investment. The robotics startup specializes in logistics automation, particularly developing AI robot technology for palletless box unloading automation in containers and trailers. With the investment, the company aims to further advance its robot remote operation technology and expand collaborations with global logistics companies.
• GenGen AI has raised KRW 12 billion in investment. The company develops generative AI-based synthetic data solutions, utilizing domain-specific generative AI technologies for sectors like defense, security, and surveillance to generate high-quality data that is difficult to collect in real-world environments. The investment will be used to enhance synthetic data generation technologies applicable to various defense weapon systems.
• Seadronix has raised KRW 15 billion in investment. The company develops AI-based autonomous ship navigation systems, providing technology that helps with safe docking by detecting the distance and approach speed between ships and docks using camera sensors. The investment will be used to advance ship AI and robotics technologies and accelerate entry into global markets.

#TREND ANALYSIS

Korean Luxury Platforms Struggle Amid Falling Valuations 

Korean luxury platforms are currently facing significant financial struggles, driven by intense marketing rivalry, controversies surrounding counterfeit products, difficulties securing investments, and high operational expenses. According to a McKinsey market analysis, the luxury sector is already experiencing a slowdown, with annual growth projected at only 1-3% through 2027. In response, these platforms have attempted various survival tactics—including workforce reductions, corporate restructuring, and international expansion—but have yet to achieve meaningful improvements in profitability.

Balaan recently secured a 15 billion won investment, but its valuation plunged sharply from 300 billion won at the Series C funding stage down to just 30 billion won. This latest investment came with stringent conditions, notably requiring Balaan to relinquish management control. Additionally, the company’s financial audit in 2023 raised doubts about its ability to sustain operations. Since then, Balaan has shifted its focus toward international markets and reported sales growth in the latter half of last year. This new capital injection aims to further support Balaan’s global expansion efforts.

MUST IT, South Korea’s longest-standing luxury retailer, has also faced significant challenges, prompting it to sell its Gangnam office and reduce employee numbers due to persistent sales deficits. The company recently broadened its brand identity to encompass comprehensive luxury purchasing services and launched a third-party logistics (3PL) business aimed at boosting profitability. Encouraged by these strategic changes, the retailer is now actively seeking new investment for the first time since 2022.

Trendbe secured Series E funding last year from existing investors; however, the total amount raised was approximately $6 billion—significantly lower than previous rounds (Series C and D). The company plans to utilize these funds primarily to expand its second-hand luxury business segment and improve overall profitability.

In contrast, Catch Fashion—once considered a promising platform—recently exited the market entirely after failing to generate profits despite accumulating 38 billion won in funding from investors such as Hanwha Galleria. Similarly, Decode, known for selling luxury items through pre-order methods, temporarily halted operations as it undergoes website renewal. Meanwhile, new entrant Jente initially appeared as a strong competitor by achieving profitability in early 2024 through direct boutique sourcing methods. However, Jente’s reputation suffered significantly following recent counterfeit product controversies.

Facing these challenges, luxury platforms are increasingly adopting distinct strategies for survival—including global market expansion, growing their second-hand product offerings, enhancing authentication processes against counterfeit goods, and introducing innovative business models. On an optimistic note, investor interest remains present: ATNY recently attracted KRW 4 billion in funding by successfully differentiating itself through direct sourcing and post-payment services that allow consumers to physically inspect products before purchase. Additionally, Coupang’s recent acquisition of Farfetch highlights ongoing shifts within the industry; Coupang has launched R.LUX—a luxury beauty service that leverages its efficient logistics capabilities—potentially reshaping market dynamics in the near future.

#MORE NEWS

Leadership Changes Across 3 Major Startup Associations in Korea

Survey Reveals Korean Female founded business profits falling

• GenGenAI Secures KRW 12B for Defense AI Data
• Contoro Robotics Raises 17.5 Billion KRW in Series A Funding