The South Korean startup ecosystem has seen significant growth over the past decade, attracting major technology firms and venture capital investments from the West. With a strong economic foundation, startups in South Korea have benefited from the support of big tech companies like Google, Meta, Qualcomm, and Samsung, as well as investment initiatives from the government, such as innovation hubs, incubators, and accelerators.
Currently, South Korea holds the ninth position globally in terms of the number of unicorns, with its capital, Seoul, emerging as a premier destination for tech startup development.
However, the economic challenges prevalent worldwide have not spared South Korean startups. Many have been forced to recalibrate by cutting costs and reducing workforce size amidst a tough funding landscape. Statista reports a decline in venture capital investments in South Korea, falling to 5.4 trillion KRW ($4 billion) in 2023 from 6.8 trillion KRW ($5.1 billion) the previous year.
The year 2024 is anticipated to be critical for many of these startups, particularly with several notable companies planning for public listings either domestically or in the United States. Here are some key startups to watch:
Yanolja
Founded by Su-jin Lee, Yanolja has revolutionized the travel booking industry in Korea by transforming the traditional love hotels into fashionable short-term rentals. Having raised $1.95 billion in funding and generating $578 million in revenue in 2023, it is eyeing a Nasdaq listing amidst challenges.
Viva Republica (Toss)
Founded by Seung-gun Lee, Toss has simplified South Korea’s complex online payment systems, attracting over 19 million monthly users and raising $1.34 billion in total funding. The company is preparing for a public listing in South Korea after posting $994.1 million in revenue in 2023.
Kurly
Under Sophie Kim’s leadership, Kurly, a grocery delivery service, has grown significantly, especially during the pandemic. After postponing its IPO plans, Kurly recorded its first profitable month in December 2023, moving closer to going public.
Dunamu
Dunamu, the company behind Upbit, South Korea’s largest cryptocurrency exchange, has seen a dramatic shift in valuation amidst the crypto market’s fluctuations. With $751 million in 2023 revenue, it is exploring an initial public offering on the Nasdaq.
Musinsa
As a leading fashion marketplace, Musinsa, founded by Man-ho Cho, boasts a vast selection of brands and a strong user base. Following a significant funding round, the company is planning an IPO in South Korea in 2025.
Danggeun Market
The hyperlocal marketplace app Karrot, operated by Danggeun Market, has seen notable user growth and profitability in 2023, suggesting a potential public listing in the future.
Bucketplace (O!House)
Bucketplace’s O!House app has become a hub for home decorating and interior design, moving towards diversifying its offerings and considering an initial public offering.
Moloco
Moloco leverages machine learning for mobile ad campaigns, assisting app developers across various industries. The company is weighing the best time for a Nasdaq debut.
ZigBang
ZigBang, a leading real estate platform, despite its financial challenges, remains a key player in the proptech sector in South Korea and is making strides towards an IPO.
Korea Credit Data
Korea Credit Data offers financial management solutions for SMEs through its app Cashnote, planning for a public listing by 2025 following a significant funding round.