Start-ups Hit a Record Low in Q3

The number of start-ups, particularly those led by small business owners, has reached a record low in the third quarter of this year. This decline is attributed to increasing closures due to the economic downturn and a decreasing interest in new ventures.

According to Statistics Korea on December 18, the number of start-ups in Q3 this year, based on National Tax Service business registrations, was 279,830 – the lowest quarterly figure since data collection began in 2016. This marks a 7 percent decrease from the same period last year.

In the first three quarters of this year, the cumulative number of start-ups was 902,590. Given recent challenges, the annual total is likely to fall below last year’s 1,238,617 and the record low of 1,190,117 in 2016.

The decline in start-ups was particularly evident in general sectors such as dining, lodging, retail, and real estate. In contrast, technology-based start-ups showed little change compared to the same period last year.

As closures among small business owners increase and the start-up market freezes, there are calls for urgent measures to absorb those displaced from productive activities into the workforce.