Last Year, 220,000 'Gisul Changup' Startups... 3 Consecutive Years of Growth

[Asia Economy Reporter Kim Daeseop] The Ministry of SMEs and Startups announced on the 27th that technology startups in 2019 amounted to 220,607, an increase of 3.9% (8,370) compared to the previous year.

According to the 'Startup Business Trends' released that day, the total number of startups last year was 1,285,259, a decrease of 4.4% (59,107) compared to the previous year. Corporate startups and technology startups, which have relatively high employment effects, maintained an upward trend. In particular, technology startups increased for the third consecutive year, reaching the highest level since the statistics were first published in 2016.

Technology startups showed an upward trend among those aged 60 and over (12.9%↑) and under 30 (12.0%↑). This is analyzed as an increase in technology- and career-based startups suitable for the aging era and new entries of young people into high value-added industries.

By industry, newly established startups in 2019 were distributed as follows: wholesale and retail trade 333,246 (25.9%), real estate 279,797 (21.8%), accommodation and food service 185,116 (14.4%), and construction 66,279 (5.2%).

The decrease in real estate startups (87,164↓) was greater than the overall startup decrease (59,107↓). This is believed to be due to the adjustment period last year caused by the base effect and reduction of benefits following the surge in individual real estate startups in 2018 due to government policy factors.

Among technology startups, the increase in knowledge-based service industries was notable. Professional, scientific, and technical services based on individual expertise increased by 14.7%, and business support services (such as manpower supply and travel agencies) that support business operations increased by 14.5%, both showing double-digit growth rates. ICT-based information and communication industries and educational services also increased by 5.5% and 4.2% respectively compared to the previous year, driving the growth of knowledge-based service startups.

However, manufacturing (8.7%↓) declined mainly in electrical and electronics (12.0%↓) and textiles and leather (9.8%↓) due to sluggish industry conditions such as decreased production and exports.

By organizational type, corporate startups last year numbered 109,520, an increase of 7.0% compared to the previous year, continuing a steady upward trend. Individual startups recorded 1,175,739, a 5.3% decrease compared to 2018, influenced by the real estate industry.

By gender, female startups decreased by 5.8% compared to the previous year to 595,484, while male startups decreased by 3.2% to 689,001. By age, startups increased among those under 30 (5.6%↑) and those 60 and over (0.8%↑). Among these, technology startups increased mainly among those under 30 (12.0%↑) and those 60 and over (12.9%↑), with most age groups showing growth compared to 2018.

By region, startups decreased in Seoul (9.1%↓), Gyeonggi (4.7%↓), and Jeonbuk (9.0%↓). The number of startups in the metropolitan area was 703,690, accounting for 54.8% of all startups, a decrease of 0.8 percentage points compared to the previous year.

This content was produced with the assistance of AI translation services.