Signal Venture investment and new unicorns have shrunk since the 2021 peak

Summary

The government reports that venture investment in 2024 was about 75 percent of its 2021 peak. The share going to early-stage start-ups fell from 27 percent in 2019 to 19 percent in 2024. Korea has fewer unicorn companies than major economies, and new entries dropped from eight a year in 2021 and 2022 to one in 2024. The government also points to a structure in which public support falls sharply as a company grows, which it says holds back the scale-up of small firms. Government budget for the all-ministry fund of funds rose to 1.4 trillion won in 2021 and then fell to 0.7 trillion won in 2023.