South Korea’s startup ecosystem has flourished over the past decade, driven by the increasing interest of major Western tech companies and venture capital firms seeking to establish a presence in the country. Not surprising then that South Korea has long been one of Asia’s most robust economies. Startups have thrived thanks to significant access to funding, with large tech firms such as Google, Meta, Qualcomm, and Samsung establishing local operations and dedicated business arms that have provided a vital source of support. The Korean government has also driven innovation by establishing innovation hubs, incubators, and accelerators, which has attracted additional funding.
Korea ranks among the top countries in terms of unicorn density, according to Statista, with Seoul emerging as a prime location for building a successful tech startup, boasting its capital city.
In the midst of global economic upheaval, local startups have not been immune to the financial storm – tech firms are slashing costs and downsizing staff to navigate a challenging fundraising environment, where valuations have taken a hit and growth-stage investments have become scarce. As a result of the market’s downturn in early 2022, South Korea witnessed a significant decline in enterprise capital investments in 2023, with the figure dropping to approximately 5.4 trillion KRW ($4 billion), a stark contrast to the $5.1 billion recorded just a year prior according to Statista.
As 2024 dawns, it’s clear that the year will hold significant importance for numerous startups across the country, especially with major players poised to make their initial public offerings (IPOs) either domestically or in the U.S. Here are the top startups to watch:
Yanolja
- Su-jin Lee
- SoftBank Imaginative and prescient Fund, a strategic collaboration between SoftBank Group Corp. and the Government of Singapore Investment Corporation (GIC), has reserved $3 billion in capital for SkyLake Funding, a newly established private equity fund focused on investing in growth-stage companies across Asia.
- $578 million ()
Based in 2005, Yanolja revolutionized the concept of love motels in Korea by transforming these once-rented-for-as-little-as-one-hour facilities into trendy short-term rentals catering to young travelers and hipsters. Today, the company operates in more than 200 countries.
The startup achieved unicorn status in June 2019 after securing funding from Singapore’s sovereign wealth fund, GIC, and investment firm, Reserving. In 2021, SoftBank’s Vision Fund II committed approximately $1.7 billion to a Series E round, valuing the startup at around $7-9 billion.
In December of last year, Yanolja established a subsidiary in Manhattan, Yanolja US, as a strategic move towards listing on the Nasdaq stock exchange. In late December, the company appointed an experienced finance professional, who previously worked at the New York Stock Exchange, as its new Chief Financial Officer. Yanolja, a travel technology company, is commencing its preliminary public offering (IPO) in the United States, potentially valuing it at between $7 billion and $9 billion.
Notwithstanding this, a Singaporean e-commerce platform played a crucial role in Yanolja’s listing on the Nasdaq. Yanolja extended an offer to acquire Interpark Commerce from Qoo10 in April 2023, agreeing to receive payment in installments through 2026; yet, Yanolja remains unable to finalize the acquisition of the outstanding balance.
Viva Republica (Toss)
- Seung-gun Lee
- The venture capital and financial institutions that have invested in or partnered with Alkeon Capital include: Alkeon Capital, Altos Ventures, Aspex Administration, Bond Capital, Goodwater Capital, GIC, Greyhound Capital, Kleiner Perkins, Korea Improvement Financial institution, PayPal, Qualcomm Ventures, Ribbit Capital, Sequoia China.
- $994.1 million ()
Seung-gun Lee, a disillusioned former dentist, founded Viva Republica in 2015, driven by his frustration with the convoluted online payment systems prevalent in South Korea at the time, which ultimately inspired him to create the finance app that would change everything. Lee was undeniably not the only individual eager to bypass traditional financial hurdles, as his app quickly gained traction. Three years on, Viva Republica had successfully secured an additional $80 million in funding, having significantly elevated its profile and valuation since its inception. The corporation was finally valued at approximately seven billion US dollars, or 9.1 billion Korean won, in December 2022 following a Today, Trivia’s popular quiz-based app, Toss, boasts a remarkable 19 million monthly active users.
Last year, digital payments company Viva Republica hired advisors to explore a potential initial public offering (IPO) in South Korea. The company reported an income of $994.1 million (approximately 1.37 trillion Korean won) in 2023, and accordingly indicated that it is more likely to achieve its targets.
Kurly
- Sophie Kim
- Investment Partners: Anchor Fairness Companions, Aspex Administration, CJ Logistics, DST International, Hillhouse, Hugh Ventures, Mirae Asset Enterprise Funding, Sequoia Capital China, SK Networks, and Translink Capital.
- $1.5 billion ()
Has long harboured ambitions of going public through an initial public offering (IPO), but it may finally be able to revive its plans to list its shares.
Riding unprecedented demand fueled by the COVID-19 pandemic, the grocery supply service has capitalized on a fortuitous surge in business. Despite previously considering a Hong Kong listing, the company shelved those plans in favor of pursuing an initial public offering (IPO) on the Seoul stock exchange by 2023. These plans ultimately stalled, as the anticipated IPO window remained closed in 2023.
As the corporation’s fiscal year concluded, a strategic pivot was undertaken to expand its product offerings, introducing premium cosmetics, personalized care items and nutritional supplements in an effort to drive revenue growth and boost gross merchandise value prior to its initial public offering.
Although an IPO may soon be on the table, as Kurly logged its first profitable month in December 2023, a significant achievement considering it was founded in 2015. The corporation has consistently reiterated its commitment to exploring an IPO following the achievement of EBITDA profitability.
Kurly, a company that raised $210 million in a pre-IPO round in December 2021, had a valuation at that time. Since then, reports suggest that its valuation has increased further.
Dunamu
- Hyoung Kim and
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Investment Partners: Anchor Fairness, Companions; Altos Ventures, Administration; Hana Financial Group, Hanwha; Stonebridge Capital; and Woori Technology Investment.
- :$751 million ($1.02 trillion Korean won)
South Korean firm Dunamu, the operator of a prominent cryptocurrency exchange based in Seoul, initially started as an inventory buying and selling service in 2012 before expanding into the digital asset market with the launch of its crypto exchange platform in 2017. In 2021, the company made history by becoming the first to obtain a digital asset service provider (VASP) licence in South Korea.
In 2022, Dunamu, South Korea’s leading cryptocurrency exchange operator, experienced a brief resurgence as the crypto market continued to thrive. Following the spectacular collapse of Luna and FTX in 2022, the fervor surrounding cryptocurrencies has significantly waned in 2023.
During the past 12 months, Dunamu experienced a significant increase in revenue, largely attributed to the resurgence of popular cryptocurrencies such as Bitcoin. This outcome yielded an internet revenue of approximately $594 million in 2023, representing a staggering 515.4 percent increase from the previous year. Despite efforts to diversify its revenue streams and mitigate losses within its subsidiaries, the corporation has faced significant hurdles. Dunamu is reportedly .
Musinsa
- Man-ho Cho
- (~ 430 billion KRW)
- Investment firms IMM Funding, KKR, Sequoia Capital, and Wellington Administration
- (883 billion KRW)
As a pioneer in Seoul’s e-commerce scene, alongside its cutting-edge platforms Zigzag from Kakao, W Idea from Shinsegae, and Brandi backed by Naver, Musinsa has emerged as one of South Korea’s most prominent and sought-after fashion marketplaces. With a vast network of over 8,000 local and global suppliers across diverse categories, including casual, sporty, and high-end offerings, the organization serves more than 13 million discerning customers.
The startup reports a milestone year, with gross merchandise value (GMV) exceeding $2.35 billion (approximately 3 trillion Korean won) in 2022, accompanied by income of $662.5 million.
The corporation is said to be in negotiations with financing institutions to facilitate its initial public offering in South Korea, slated for 2025. Founded in 2012 by CEO Man-ho Cho, this Korean-style platform secured a significant investment from KKR, valuing it at approximately $2.76 billion in July 2023.
Danggeun Market
- Gary Kim, Paul Kim
- $205 million
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The investors include Altos Ventures, Aspex Administration, Capstone Companions, DST International, Goodwater Capital, Kakao Ventures, Robust Ventures, and SBVA.
- $96.3 million
Founded in 2015 by Gary Kim and Paul Kim, Danggeun Market operates Karrot, a pioneering hyperlocal marketplace app connecting users with their neighbours to buy, sell, and exchange gently used goods. The company operates in several countries, including South Korea, Canada, the United Kingdom and the United States. Founded in China, with a presence in the US and Japan, the company achieved a remarkable milestone by raising capital at a valuation of $2.7 billion in 2021.
The corporation reported a strong performance for 2023, buoyed by robust consumer growth in the US. and Canada. The corporation is expected to go public, but its CEO, Gary Kim, told investors in May that the company would consider an initial public offering (IPO) only once it has built a stronger financial foundation.
Bucketplace (O!Home)
- Seungjae Lee
- $261 million
- BRV Capital Administration, Capstone Companions Korea, Industrial Financial institution of Korea, KB Funding and KB Funding & Securities
- $181 million
Founded in 2016, OHouse’s origins lay in a community-driven platform where users shared interior design content, initially taking the form of a social media group focused on home decor and aesthetics. Today, the corporation offers an extensive range of services encompassing virtually all aspects of residential property management, including home improvement, repair, and maintenance, as well as furniture supply, moving assistance, and waste disposal services.
The corporate’s latest funding round, a Series D financing, successfully secured $182 million at a valuation of… Funded by a significant investment from Chinese e-commerce giant Alibaba, the initiative responds to local media scrutiny.
Bucketplace’s enterprise model bears striking similarities to Houzz, the California-based home renovation software platform that has.
Moloco
- Ikkjin Ahn, David Sehyuk Park
- $200 million
- DAOL Ventures, Draper Athena, EDBI, Constancy Administration & Analysis Firm, Mirae Asset, Samsung Ventures, Smilegate Funding, Tiger International Administration
An adtech startup leveraging machine learning technology constructs mobile campaigns for cell app developers across various sectors, including gaming, social networking, e-commerce, ride-sharing, meal delivery, and fintech, empowering them to transform first-party consumer data into targeted advertising, revenue-generating, and customer-acquisition initiatives.
Following the acquisition of shares by EDBI, a Singapore-based private equity and venture capital arm, the corporation gained control over the firm from another investor.
The corporation was ultimately acquired by Tiger International Administration for a valuation of approximately $1.5 billion in the year 2021.
Moloco plans to go public via listing on the Nasdaq, with Chief Executive Officer Ikkjin Ahn hinting at an imminent initial public offering during a press conference in Seoul in December 2023.
ZigBang
- SungWoo Ahn
- $248 million
- Altos Ventures, BlueRun Ventures, Goldman Sachs Investment Partners, Korea Development Bank, Hana Financial Group, and IMM Investment
- $97 million
South Korean prop tech startup ZigBang secured pre-IPO funding in 2022, valuing the company at approximately $1.8 billion or 2.5 trillion KRW, with backing from the Korea Innovation Financial institution, IMM Funding, and Hana Securities. It secured a funding in January 2022, ahead of securing Sequence E funding, to venture into the smart home market.
South Korea’s real estate market has witnessed steady growth for three consecutive years, mirroring the country’s overall economic trends.
Korea Credit score Information
- Kelvin Dong-ho Kim, Seong-ho Lee
- $196 million
- D-Camp, Fiserv, GS Holdings, Hanwha Life, Kakao, KB Securities, Kclavis, KT Funding, LG Uplus, Morgan Stanley Tactical Worth, QUAD, Pavilion Capital, Playmake Ventures, Samsung Fireplace & Marine Insurance coverage
- $103 million
Founded in 2016, Based is a Seoul-based fintech startup that offers a suite of solutions to support over two million small- and medium-sized enterprises (SMEs) and retailers across Korea. In 2017, KCD introduced Cashnote, a comprehensive bookkeeping app designed specifically for small-to-medium-sized enterprises (SMEs), enabling homeowners to gain a precise understanding of their cash flow by tracking revenues, bank card sales, expenses, sales ledgers, and financial coverage data.
Valued at approximately $1 billion (~1.3 trillion Korean won), the company received investment capital from Morgan Stanley Tactical Value funds in August 2023. Kentucky Creative Development (KCD) is poised to make its initial public offering (IPO) by 2025.
