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565,640 Startups: A Map of Declining and Growing Sectors
In the first half of 2026, newly founded startups totaled 565,640, a 1.5% decrease compared to the same period last year, marking a downward trend for the sixth consecutive year. Wholesale and retail startups led the overall decline, dropping by 10.7% (22,186 entities) to 185,409. Conversely, tech-based startups rose by 14.2% to 123,418, with information and communications startups surging by 59.4%. Although overall startup creation among individuals aged 39 and under decreased, tech-based and information and communications startups among youth saw sharp increases. The core takeaway is an industrial restructuring shifting from wholesale and retail toward knowledge-based sectors such as information and communications and professional services, rather than a simple overall drop in startups.
In the first half of 2026, newly founded startups totaled 565,640, a 1.5% decrease compared to the same period last year, marking a downward trend for the sixth consecutive year. Wholesale and retail startups led the overall decline, dropping by 10.7% (22,186 entities) to 185,409. Conversely, tech-based startups rose by 14.2% to 123,418, with information and communications startups surging by 59.4%. Although overall startup creation among individuals aged 39 and under decreased, tech-based and information and communications startups among youth saw sharp increases. The core takeaway is an industrial restructuring shifting from wholesale and retail toward knowledge-based sectors such as information and communications and professional services, rather than a simple overall drop in startups.
565,640 Startups: A Map of Declining and Growing Sectors Newly established startup companies in South Korea reached 565,640 in the first half of 2026. According to the "First Half 2026 Startup Trends" released by the Ministry of SMEs and Startups (MSS) on August 27, this represents a decrease of 8,880 companies, or 1.5%, compared to the same period last year. Looking solely at the fact that the number of first-half startups has declined for six consecutive years, one might interpret that vitality in the domestic startup market continues to wane. However, breaking down the figures by industry reveals shifts that cannot be explained by aggregate totals alone. While startups decreased in wholesale and retail, and transportation and warehousing, the information and communications sector recorded an increase rate close to 60%, and new startups also rose in professional, scientific, and techni…
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