South Korea startup numbers hit record low in first half of year

South Korea's number of new startups in the first half of the year has fallen to 565,640, the lowest level since statistics began being collected in 2016. According to data from the Ministry of SMEs and Startups, this represents a 1.5% decrease compared to the same period last year, marking the sixth consecutive year of decline.

The decline is most prominent in the wholesale and retail sectors, which saw a 10.7% drop. Other sectors experiencing decreases include transportation and warehousing, personal services, and manufacturing.

In contrast to the overall downward trend, technology-based startups increased by 14.2% year-on-year, accounting for 21.8% of all new businesses. This growth was driven largely by the information and communications technology sector.

Regionally, Incheon has seen a significant downturn. The number of new startups in Incheon fell by 3.2%, a rate twice as fast as the national average. Incheon's startup numbers have also reached their lowest point in ten years, continuing a six-year downward trend.