Startup Numbers in the First Half of This Year Decreased by 4.7% Compared to the Previous Year

69,5891 Startups in the First Half of the Year... Continued Growth in Online and Contactless Sectors

[Asia Economy Reporter Kim Cheol-hyun] The number of startups in the first half of this year has decreased compared to the same period last year. According to the "Startup Enterprise Trends" announced on the 31st by the Ministry of SMEs and Startups (Minister Lee Young), the total number of startups in the first half of this year was recorded at 695,891. This represents a 4.7% decrease in total startups compared to the previous year. Excluding the real estate industry, which saw a surge in business registrations since 2020, the decrease was 0.7%.

Looking at trends by industry, wholesale and retail businesses increased by 4.3% in the first half of this year compared to the same period last year, supported by the activation of online shopping. On the other hand, face-to-face industries such as accommodation and food services decreased by 11.9%, and personal services also decreased by 2.5% due to the base effect following a sharp rise of 9.1% in the first half of the previous year. The real estate industry continued to decline, decreasing by 18.9% following a 45.1% sharp drop in the first half of last year.

Technology startups decreased by 0.9% compared to the same period last year, totaling 121,289, due to the base effect from the record high performance in the first half of last year. With the acceleration of non-face-to-face activities due to COVID-19, the information and communication industry increased by 9.1%, and the creative, arts, leisure, and education service industries also increased by 16.9% and 4.4%, respectively. In contrast, manufacturing and business support services decreased by 11.7% and 6.2%, respectively.

By age group, startups decreased in all age groups except for those in their 30s. In particular, the significant decrease in real estate startups led to a notable decline in startups among those in their 50s and 60s. Technology startups also declined in all age groups except for those in their 30s. By gender, female startups decreased by 6.1% compared to the same period last year, totaling 320,385, while male startups decreased by 3.6% to 374,875.

By organizational type, corporate startups increased slightly by 0.04% to 62,729 compared to the same period last year, while individual startups decreased by 5.2% to 633,162. However, excluding the real estate industry, corporate startups decreased by 1.9%, and individual startups decreased by 0.6% compared to the same period last year. Corporate startups increased in industries such as professional, scientific, and technical services (14.0%), education services (11.9%), and arts, sports, and leisure (11.7%), but decreased in construction (16.4%), agriculture, forestry, fishing, and mining (15.4%), and water supply, sewage, and waste management (14.9%). Individual startups increased in agriculture, forestry, fishing, and mining (18.6%), information and communication (9.7%), and wholesale and retail (5.2%), but decreased in finance and insurance (38.4%), real estate (20.7%), and manufacturing (12.3%). For technology startups, corporate startups increased by 3.9%, while individual startups decreased by 2.1%.

By region, startups increased in Chungnam (11.5%) and Gangwon (1.8%), but decreased in most regions including Busan (9.0%), Sejong (9.0%), and Seoul (8.8%). However, excluding the real estate industry, startups increased in Sejong (7.0%), Incheon (6.3%), and Gyeonggi (2.0%), while decreasing in Jeju (5.2%), Seoul (4.3%), and Jeonnam (4.1%).

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