Which industry did you start the most in Korea in the first half of 2023?

Excluding the real estate industry, we started more businesses in the first half of 2023 than we did a year ago. In which industry did the most new CEOs appear? My business grows better when I constantly understand macro trends such as start-up trends.

Are you considering starting a business? If you plan to start a business under your name in the near future, it is essential to understand the market trends. In this case, it is important to understand the business trends of your close acquaintances and analyze the local commercial district, but it is also essential to understand objective data on the domestic market. What is the start-up trend of the industry in which you are planning to start a business, what the background is, and what types of other new entrepreneurs are flocking to.

Which industry did you start the most in Korea in the first half of 2023?

In the meantime, in September, the Ministry of SMEs and Startups announced [Startup Company Trends in the First Half of 2023 (January-June). From January to June 2023, new businesses were classified by industry, tracking the increase and decrease compared to last year, and the factors were analyzed. It is a very important data that gives you a quick look at the domestic start-up market.

A total of 650,504 companies started their businesses in the first half of 2023. This is a decrease of 45,000 or about 6.5% from the first half of last year (495,891). We need to look at this statistic a little more.

This is because of the impact of the real estate industry. Since last year, the number of new start-ups in the real estate industry has decreased significantly due to high interest rates and the decline in the real estate market. Compared to the second half of last year, it decreased by half (47.3%). Therefore, the real estate industry was the main reason for the decline in start-ups in the first half of 2023.
For this reason, excluding the real estate industry, the number of startups in the first half of this year increased from the previous year.

  • Start-up companies in the first half of 2022-2023 (excluding real estate)
    (2022) 565,565 → (2023) 581,794

Accommodation and restaurant business(87,621, 18.3%↑)

After the pandemic of COVID-19 was declared, start-ups in face-to-face industries also became active. A typical example is the lodging and restaurant business. A total of 87,621 new companies appeared in the first half of 2023. The number of start-ups also increased by 18.3% from the first half of last year. This includes pubs.

As COVID-19 came to an end, people began to come out again, and desserts such as Tanghulu and Gaeseongjuak became popular on social media, which had a positive effect on restaurant start-ups. Furthermore, the fact that shopping malls, which have increased vacancy rates due to the sluggish real estate economy, cut rent made it easier to start a business. In addition, as the number of domestic and foreign tourists increased, the establishment of the accommodation industry increased significantly.

Accommodation and restaurant businesses are actively starting new businesses in all age groups, especially those aged 60 or older.

Wholesale and retail business centered on online shopping malls (238,279 units, 3.4%↑)

Which industry did you start the most in Korea in the first half of 2023?
출처 : pixabay


In the first half of 2023, there were a total of 238,279 newly established wholesale and retail businesses. The absolute number is also enormous, up 3.4 percent from the wholesale and retail businesses founded in the first half of last year. The important thing is that the wholesale business decreased in detail, but the number of online shopping malls such as non-store retail increased significantly, leading to an increase in the number.

Buying things online has long become commonplace. In addition, the initial investment cost is low when starting a business, and the platform to broker online sales is constantly developing. With the easy entry into the online shopping market through Gmarket, Naver, Coupang, and 1st Street, the number of new bosses entering the online shopping market is steadily increasing.

While delivery services were central to e-commerce during the pandemic, after the pandemic, travel and transportation services (65.1%), cultural and leisure services (28.3%), and e-coupon services (33.4%) grew significantly in online shopping as overseas travel and outside activities increased.

One of the characteristics of online shopping is that young private businesses in their 30s and younger are leading the increase in wholesale and retail businesses. In addition, businesses that are closed or closed are also high because it is easy to enter the market in the early stages.

Personal service business (32,159, 10.5% ↑)

While the market expands as freelancers, the start-ups of the personal service industry are also increasing. With the emergence of new types of personal service start-ups such as personal care services, physical care services such as body shape, and business trip large dog bath services, startups of the personal service industry are actively taking place.

During the first half of 2023, a total of 32,159 companies started their businesses as personal services. Given that many cases of innovative start-ups targeting niche markets are included in the personal service industry, it can be seen that more and more single-person start-ups provide new services that target markets with clear demand.

Education service industry(23,480, 7.6% ↑)

In the first half of 2023, a total of 32,159 companies started their businesses as education services. In the first half of last year, it increased by 10.1% compared to companies that started their businesses in this industry. Except for those under the age of 30, most people are starting new businesses.

The background of this is that the number of small educational service start-ups using digital technology is increasing. In addition, as non-face-to-face education has shifted back to face-to-face, the size of the education service industry, which had been shrinking so far, is returning to its previous level. Furthermore, as consumption patterns have shifted to individuals rather than families, education services in the relevant fields have also increased as demand for health, such as health, yoga, and Pilates, and hobbies such as music and art, has increased.

Summary

  1. Excluding the real estate industry, the number of start-ups in the first half of 2023 increased compared to the same period last year.
  2. There are more start-ups in wholesale and retail, lodging and restaurant, personal service, and education service.
  3. Start-ups have shrunk in the real estate, construction, professional and scientific technology, manufacturing, and financial and insurance industries.

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