Q1 Startup Activity Down 3.4% YoY... Accommodation and Food Services Down 5.4%

Ministry of SMEs and Startups Announces 'Startup Business Trends from January to March 2022'

[Asia Economy Reporter Kim Bo-kyung] Startup activity in the first quarter of this year showed a slight contraction compared to the same period last year.

According to the 'Startup Company Trends from January to March 2022' released by the Ministry of SMEs and Startups on the 26th, the number of startup companies in the first quarter of this year was 348,732, a 3.4% decrease compared to the same period last year.

By industry, startups in real estate and accommodation & food services decreased by 15.6% and 5.4% respectively compared to the same period last year, while startups in personal services increased by 2.2%. Technology-based industries and wholesale & retail trade were at similar levels to the same period last year.

Excluding real estate, the number of startup companies in the first quarter was similar to the same period last year. Looking into details, the decrease in real estate startups was due to a base effect following a surge in business registrations in 2020.

Among technology-based industries, startups in information and communication and education services increased by 9.6% and 8.5% respectively compared to the same period last year, driven by online and contactless trends due to the COVID-19 pandemic.

However, other technology-based industries such as business support services and manufacturing decreased by 8.7% and 7.4% respectively.

By age group, startups decreased in all age groups except those in their 30s. In particular, startups by those aged 60 and above dropped by 23.9% compared to the same period last year. By organizational form, corporate startups increased by 2.5% compared to the same period last year, while individual startups decreased by 3.9%.

By region, startups decreased in all areas except Chungnam, Jeju, and Incheon.

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