South Korea's Entrepreneurship Index Up 2nd Straight Year, World's 6th

Republic of Korea Rapidly Rises to 6th in Global Entrepreneurship Rankings: A New Wave of Innovation and Pursuit of Social Value The results of the 2024 Global Entrepreneurship Monitor (GEM) survey, recently announced by the Korea Institute of Startup & Entrepreneurship Development (KISED), clearly show that the Republic of Korea is emerging as a hub for innovative entrepreneurship. Securing 6th place among 56 countries, Korea recorded an upward trend for two consecutive years, following 9th place in 2022 and 8th place in 2023. This goes beyond a mere rise in ranking and represents a significant indicator of the qualitative growth of the domestic startup ecosystem. GEM, organized by the Global Entrepreneurship Research Association (GERA), diagnoses the level of entrepreneurship in each country from various perspectives, and Korea has consistently participated since 2008. This year, Korea scored 6.0 out of 10 points, an increase of 0.2 points from the previous year, continuing its robust growth. In detail, the expert survey showed significant improvements in 'market openness' and 'level of external collaboration,' while 'primary, secondary, and high school education and training' and 'financial environment' also displayed positive changes. This suggests that government policies and educational infrastructure are contributing to the revitalization of startups. The survey targeting the general adult population yielded even more encouraging results. The perception that 'it is easy to start a business in our country' increased (40.2%), and notably, 'fear of startup failure' recorded the second lowest rate among participating countries at 29.2%, indicating the spread of a culture that tolerates failure. The proportion of those engaged in early-stage entrepreneurial activity also rose to 11.7%. A notable point is the change in entrepreneurial motivation. While 'wealth (income) creation' still predominates, responses to start a business 'to change the world' surged by 6.4%p from the previous year to 10.2%. The response that 38.5% of early-stage entrepreneurs prioritize social and environmental impact more than profit is evidence that domestic entrepreneurship is moving beyond mere profit-seeking towards the realization of social value. Furthermore, sales utilizing digital technology significantly increased to 19.1%, allowing a glimpse into the flexible adaptability of entrepreneurs in tune with the era of digital transformation. As mentioned by Choi Yeol-su, Acting President of the Korea Institute of Startup & Entrepreneurship Development, this GEM announcement confirms that entrepreneurship is taking root throughout Korean society. Ongoing support will be needed in the future so that all citizens can cultivate and exercise their entrepreneurial spirit.