62,2800 Startup Companies in the First Half of the Year... 4.3% Decrease from Last Year Due to 3 Highs and Real Estate Slump

Ministry of SMEs and Startups Announces Startup Trends for First Half of 2024
Startup Decline Across All Age Groups Except Those Over 60

The number of startups in the first half of this year was approximately 622,800.

On the 25th of last month, a company introduced a vertical strawberry farm at the 'Agri-food Tech Startup Entrepreneurship Expo' held at COEX in Samseong-dong.
[Photo by Yonhap News]

The Ministry of SMEs and Startups announced the "2024 First Half (January to June) Startup Trends" on the 30th.

Startups in the first half of this year totaled 622,760, a 4.3% (27,744) decrease compared to the previous year.

By industry, startups increased in personal services (8.4%) and business facility management such as building management and cleaning (5.4%) due to factors like aging population and an increase in single-person households. Additionally, positive effects from strong export trends led to an increase in startups in transportation and warehousing (1.3%).

On the other hand, due to the continued "three highs" of high interest rates, high prices, and high exchange rates, along with reduced consumer spending power and sluggish real estate market, new startups in wholesale and retail trade, accommodation and food services, and real estate decreased by 5.2% (12,383), 7.0% (6,102), and 8.7% (5,990) respectively compared to the previous year, accounting for most of the overall decline. Additionally, information and communication (10.3%), arts, sports, and leisure (7.9%), and construction (1.4%) sectors also saw decreases.

Monthly startups increased in January (14.6%) and April (3.4%) compared to the same period last year, but decreased in February (10.2%), March (10.7%), May (7.2%), and June (13.9%).

By age group, startups decreased in all age groups except those aged 60 and over (4.0%). Compared to the previous year, decreases were seen in those under 30 (8.8%), in their 30s (6.3%), 40s (6.3%), and 50s (2.7%).

Technology-based startups in the first half of this year numbered 111,577, a 3.6% (4,158) decrease compared to the previous year, but the proportion of technology-based startups within total startups increased by 0.1 percentage points compared to the previous year.