South Korea ranks 11th in the world for the number of unicorns — privately held startups valued at $1 billion or more — highlighting the country’s slow pace in producing high-value, innovative companies.
According to an analysis by the Korea Chamber of Commerce and Industry (KCCI) of CB Insights’ global unicorn list, South Korea had 13 unicorns as of October 2024. The United States dominates with 717 unicorns, representing 56.2% of the global total of 1,276 unicorns. China ranks second with 151 unicorns, followed by India (64), the United Kingdom (56), Germany (32), France (29), Israel (23), Canada (20), Brazil (18), and Singapore (16).
Since the COVID-19 pandemic, the gap has widened further. The U.S. added 229 new unicorns, accounting for 72.2%of global growth during this period, while South Korea added just two, signaling relatively weak performance compared with other leading countries.
KCCI officials attribute the slow growth to structural and regulatory barriers. “Positive regulations — rules that only allow certain activities and prohibit all others — and the so-called ‘growth penalty,’ which increases regulatory pressure as companies expand, are holding back startups,” a spokesperson said. Limited domestic market size and insufficient access to global capital also hinder the creation of unicorns.
The pace of growth to unicorn status in South Korea is also slower than in leading markets. On average, Korean unicorns take 8.99 years to reach a $1 billion valuation, compared with 6.27 years in China, 6.48 years in Germany, 6.70 years in the U.S., and 6.89 years in Israel. Across the top 10 countries, the average time to unicorn status is 6.97 years.
Sector trends reveal further differences. Globally, 36.3% of unicorns in the top 10 countries are in artificial intelligence (AI) and IT solutions, while nearly half (46.1%) of Korean unicorns are in consumer goods and retail.
KCCI called for stronger support for AI and IT startups and the establishment of “innovation hubs” with experimental policy frameworks, such as a national “mega sandbox,” to accelerate high-tech entrepreneurial growth.
“Slower unicorn creation is a warning sign that the vitality of Korea’s startup ecosystem is weakening,” said Kim Hyun-soo, head of KCCI’s economic policy team. “We need to rebuild an environment that fosters high-growth startups capable of reaching unicorn status.”
