2024: Just 25% of Startups Profited

## Shining Survival Strategies in an Uncertain Market: 1 in 4 Startups Record a Profit **Seoul, South Korea –** Amid an uncertain economic climate marked by a prolonged investment winter, one in four domestic startups demonstrated remarkable resilience by recording an operating profit in 2024. A deep dive into the 2024 profit and loss and financial data of approximately 7,000 domestic startups by 'Innovation Forest,' a startup growth analysis platform, revealed that a significant number of companies are securing robust profitability and laying the groundwork for growth. ### 25% of All Startups Turn a Profit, 10% Escape Deficit According to this analysis, 1,741 companies, accounting for 25% of the approximately 7,000 startups registered with Innovation Forest, generated an operating profit throughout 2024. This indicates not merely an increase in sales volume, but the establishment of a tangible profit structure and the securing of financial soundness. Particularly noteworthy is the fact that 732 of these companies, or about 10% of all startups, successfully transitioned from a deficit in 2023 to a surplus in 2024. This metric demonstrates that a considerable number of startups have succeeded in improving their fundamental structure through cost efficiency and service advancement, even in challenging environments. ### Mixed Fortunes by Industry: Advertising/Marketing and Logistics Make Strides Amid Strong Beauty Sector Changes in profitability by industry showed a more interesting pattern. The 'Beauty/Cosmetics' industry continued its strong performance, still accounting for the largest share among all industries with an operating profit ratio of 42%. However, this is a slight decrease compared to 49% in 2023. In contrast, the 'Advertising/Marketing' industry demonstrated dazzling growth, surging from 31.8% in 2023 to 40% in 2024, securing the second position. The 'Education' category also ranked third, recording 33.2%. Notably, the 'Logistics' industry showed remarkable growth, rising from 19% in 2023 to 29.4% in 2024, attracting attention as a successful case of efficiency improvement. This suggests that platform and service advancement, along with bold cost-efficiency strategies, were effective. Unfortunately, the 'Environmental Energy' (17.3%) and 'Fashion' (31.8%) industries experienced slight declines compared to the previous year, being affected by changes in market conditions. ### Efforts to Improve Profit Structure Bear Fruit, Sustainable Growth Expected These industry-specific changes in profitability are interpreted not merely as market fluctuations, but as the result of each startup actively working to improve its profit structure. In particular, the growth in the advertising/marketing and logistics sectors serves as proof that platform and service advancement, coupled with cost-efficiency strategies, can lead to tangible results. Hong Gyeong-pyo, CEO of Mark & Company, commented on this announcement, stating, "Startups that generated operating profit amidst a prolonged investment winter have demonstrated not just sales volume, but sustainability and market competitiveness beyond that. We highly value the achievements of companies that showed resilience during challenging times, and we anticipate more startups will continue substantial, profitability-driven growth in 2025." This analysis result is interpreted as a positive signal indicating that the startup ecosystem is securing new growth engines through innovation, even in times of crisis.