Startup Alliance "Startup Trend Report"
Different Outlooks from Founders and Employees on the Venture Ecosystem
Clear Expectations for New Government Venture Policies on the Ground
A recent survey found that only 35% of startup employees are satisfied with their work, which is about half the satisfaction rate of employees at large corporations. Despite the government's push to become one of the "Top Four Global Venture Powerhouses" and its efforts to expand the ecosystem, a significant gap in perception remains between founders and employees on the ground.
According to the "Startup Trend Report 2025" released by Startup Alliance and Open Survey on November 18, the work satisfaction rate among startup employees dropped by 6.5 percentage points from the previous year, reaching 35%. This marks a third consecutive year of decline, following 49.2% in 2022 and 42.0% in 2023. The gap is especially pronounced when compared to the 66.5% satisfaction rate among employees at large corporations.
In contrast, founders reported a more optimistic outlook. This year, founders rated the overall atmosphere of the startup ecosystem at 54.5 out of 100, an improvement over last year's 50.5. The most commonly cited reasons for this positive change were "strong policy initiatives from the government and public sector" (53.1%) and "an increase in private support programs" (43.8%).
There was also a difference in perception regarding the direction of the new government’s policies. While 64.5% of founders expected the policy stance to bring positive changes to the ecosystem, only 54.5% of employees shared this optimism.
The two groups also differed on what they saw as the most urgent policy tasks. Both cited "expanding the R&D budget" and "supporting innovative fields such as artificial intelligence (AI) and deep tech" as top priorities. However, founders placed greater emphasis on financial support, such as "expanding the budget for the Korea Venture Investment Corp. Fund of Funds," while employees prioritized securing talent, including "nurturing talent, preventing brain drain, and attracting overseas professionals."
Startup Alliance held a press conference for the "Startup Trend Report 2025" on the 18th at Front1 in Mapo-gu, Seoul, where a panel discussion on changes in the venture ecosystem took place. From the left: Lee Gidae, Head of Startup Alliance Center; Kim Chiwon, Vice President of Kakao Ventures; Hwang Joeun, Director of Healing Paper; Jung Inhye, Team Leader of Altos Ventures; Shim Jaeyoon, Head of Startup Policy Division at the Ministry of SMEs and Startups. Startup Alliance
On the same day, Startup Alliance held a roundtable at Front1 in Mapo-gu, Seoul, to announce the results of this perception survey and discuss ways to improve the overall environment of the startup ecosystem and develop better human resource management strategies. Hwang Joeun, Director of Healing Paper, said, "Although the industry is highly volatile, it is most important for companies to minimize employees' anxiety. When the market is tough, companies often try to solve cost-related issues, including labor costs, but to attract talented people, companies need to make even greater efforts."
Jung Inhye, Team Leader at Altos Ventures, commented, "The recruitment market seems to be increasingly divided between sectors that still prefer junior staff and those that do not. For example, in fields like beauty, there is a preference for the creativity and ingenuity of young people, which cannot be taught through education. However, in established areas like development, the trend is moving toward retraining existing employees rather than hiring juniors."
There were also opinions about changes in the ecosystem following the introduction of artificial intelligence (AI). Participants agreed that since 2022, with the shift to a higher interest rate environment and the emergence of tools like ChatGPT, the venture ecosystem has reached a major inflection point.
Kim Chiwon, Vice President of Kakao Ventures, remarked, "The recent surge in startups seeking to enter the global market cannot be attributed solely to a shrinking domestic market. The AI tool itself can be used globally, regardless of language, so there is a growing tendency to believe that there is no need to stay only in the domestic market."
Hwang also noted, "For Gangnam Unni, while it is a platform that can succeed overseas if it does well in Korea, when you look at medical laws in various countries, domestic regulations are often the strictest, which is frustrating. To help domestic platforms grow, it would be better if regulations were flexibly adjusted to meet global standards."
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