Korean Startup Investment Winter: H1 Shrinks 64%, No Unicorns

Investment in the South Korean tech startup ecosystem sharply contracted in the first half of 2025. According to a report by global startup data analytics firm Tracxn, South Korean tech companies attracted a total of $397 million (approximately 550 billion KRW) in investment in the first half of this year, which is a sharp decrease of 64% compared to the same period last year and 47% compared to the second half of last year. Capital inflows significantly decreased across all investment stages, including seed, early, and late stages, with seed-stage investment specifically plummeting by 81% compared to the first half of the previous year. Amidst this overall slowdown, enterprise applications, food & agritech, and healthtech emerged as top investment sectors. Enterprise applications attracted the most investment with $194 million, but this was a 58% decrease compared to the first half of the previous year. In contrast, food & agritech showed exceptional growth, attracting $71.4 million, marking a 49% increase compared to the first half of the previous year. Healthtech, with $49.8 million, could not avoid a decline in investment. There were no large investment rounds exceeding $100 million in the first half of this year, and no unicorn companies with a valuation of over $1 billion emerged. This contrasts with the second half of last year, when one company achieved unicorn status. In contrast to the sluggish investment market, the mergers and acquisitions (M&A) market was active. A total of 12 tech company acquisitions took place, representing a 33% increase compared to the second half of last year. Key transactions included China's IMEIK acquiring Regen Biotech for $190 million, and KL&Partners acquiring Manyo for $129 million. The listing market also showed vitality, with several companies like GC Genome, Intocell, ImmuneOncia, and ROKIT Healthcare completing their IPOs. Regionally, Seoul-based tech companies accounted for an overwhelming 79% of total investment, clearly demonstrating a concentration in the metropolitan area. From an investor perspective, SparkLabs, KB Investment, and Kakao Ventures were named as key investors. Tracxn analyzed that although the South Korean tech ecosystem is experiencing a decline in funding, investor interest in specific sectors such as enterprise applications, food & agritech, and healthtech remains strong, and active M&A activities and Seoul's continued market dominance are positive signs.