Last Year’s New Startups Hit Record High... Growth Centered on Non-Face-to-Face E-Commerce and Tech Ventures

1,484,667 Startup Companies in 2020, a 15.5% Increase from the Previous Year
Non-Face-to-Face Industries, Tech Startups, and Startups by 30s Youth Rise Amid COVID-19 Spread

Minister Kwon Chil-seung of the Ministry of SMEs and Startups is announcing the 2021 work plan at the Government Seoul Office in Jongno-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Heeyoon] Despite the impact of COVID-19, the number of startup companies last year reached 1,484,667, an increase of 15.5% compared to the previous year. In particular, there was a notable rise in new business operators in non-face-to-face e-commerce and real estate sectors.

According to the 'Startup Company Trends' announced by the Ministry of SMEs and Startups on the 24th, even excluding the significant increase in real estate at the beginning of the year, startups increased by 4.1% compared to the previous year, and technology startups grew by 3.8%.

By industry, wholesale and retail trade increased by 56.4% compared to the previous year, centered on non-face-to-face e-commerce, and information and communication technology (ICT) sectors such as software development and supply also saw a significant rise from 30,336 to 36,760 companies.

Manufacturing declined by 4.6% compared to the previous year due to continued sluggish business conditions since last year and economic downturn caused by the spread of COVID-19. Face-to-face and densely populated sectors such as education services and creative, arts, and leisure services also decreased by 8.9% and 10.4%, respectively, indicating a contraction in new entries.

Accommodation and food services, as well as personal services, also decreased by 10.0% and 4.7%, respectively, compared to the previous year due to social distancing and reduced outings.

Technology startups recorded an all-time high of 228,949 companies, an increase of 3.8% (8,342 companies) compared to the previous year, driven by growth in knowledge-based service industries such as information and communication and professional, scientific, and technical services.

By age group, startups among youth under 30 increased by 19.1% overall, centered on e-commerce (56.8%) and information and communication (11.4%), while seniors aged 60 and over also saw significant increases in information and communication (46.5%) and professional, scientific, and technical services (31.7%), leveraging their existing experience.

An official from the Ministry of SMEs and Startups stated, "To continuously sustain the startup boom seen last year, we plan to prepare and announce a series of customized measures for startups in various fields such as youth startups and middle-aged and senior startups throughout this year."

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