Korea Unicorn Startups: South Korean Companies Every Investor Should Know About
South Korea is becoming a leader in the global tech and startup world.
Privately owned companies valued at over $1 billion, also known as unicorn startups, show how much innovation and economic growth is happening. In this article, we’ll look at some of the most notable Korea unicorn startups and how they’re changing different industries.
The Rise of Unicorn Startups in South Korea
South Korean unicorn startups, which hold a value of over $1 billion, have a big impact on the country’s economy. Here’s how:
- These companies create many jobs, helping people find good work.
- South Korean unicorn startups bring in a lot of money from investors, helping the economy grow.
- They lead in new technology, making South Korea a tech leader.
- They expand to other countries, bringing back money to South Korea.
- The success of unicorn startups in South Korea inspires more startups, creating a cycle of growth and innovation.
Most South Korean startups succeed because the government helps with policies, grants, and reducing regulations.
Moreover, South Korea has fast internet and advanced technology that help startups. The country also values education and innovation, encouraging new ideas, and has plenty of financial support from investors and banks.
Being close to major markets like China and Japan also helps South Korean unicorn startups develop quickly. Finally, big companies work with startups, providing support and investment.
Compared to other countries:
- South Korea has fewer unicorns than the US and China but is growing quickly.
- The government in South Korea is very involved, similar to China.
- Like other countries, South Korea focuses on tech sectors like e-commerce and fintech but also excels in gaming and entertainment tech.
- While there’s huge competition, strong government support and tech infrastructure help South Korean startups succeed.
- Placing a strong focus on education and tech skills benefits startups, much like in the US.
In summary, unicorn startups play a key part in South Korea’s economy. They’re quite successful because of government support, advanced tech, and a culture of innovation, hence creating jobs, attracting investment, and driving technology.
Though South Korea has fewer unicorns than the US and China, it’s quickly growing and becoming a major player globally.
List of Top 7 Unicorn Startups
In the world of startups, unicorns—companies valued at over $1 billion—stand out for their remarkable growth, innovation, and impact.
Here’s a list of some of the greatest South Korean unicorn startups, selected based on their valuation, groundbreaking contributions to their industries, and influence on markets and consumers.
1. Toss
The app-based platform, Toss provides users with modern solutions, such as money transfer, payment splitting, QR code scanning, and card management. It helps people keep track of their credit score, credit payment status, and loan recommendations, as well as income and expenses for financial reporting.
Overall, this unicorn startup offers a platform for managing investments in real estate, stocks, bonds, mutual funds, and securities, available on both Android and iOS.
Toss was founded in 2011 in Seoul and joined the Unicorn Club in 2018 with a valuation of $7.4B in 2021.
2. Kakao Mobility
Kakao Mobility started in 2015 in Pangyo Technovalley (otherwise locally known as the city of Seongnam-si), the Silicon Valley of South Korea, offers a user-friendly app for various transportation needs.
You can hail taxis, arrange carpools, and book drivers on demand. The app also helps you find parking and gives real-time traffic updates for easier navigation. It works on both Android and iOS devices.
Kakao Mobility is a spinoff of the first unicorn company KakaoTalk and became a unicorn in 2021, valued at around 8.5 trillion won (US$6.5 billion).
3. Coupang
Founded in 2010 in Seoul, South Korea, Coupang started as a fresh e-commerce platform with a “rocket delivery” service. It sells a wide range of products, like groceries and electronics, and delivers them quickly and affordably.
Investors such as SoftBank Vision Fund and Sequoia Capital have invested over $3 billion in the company. While headquartered in Seoul, Coupang operates across South Korea through a user-friendly app and website. It also offers Coupang Eats, a food delivery service similar to Uber Eats, expanding beyond traditional e-commerce.
Coupang has been valued at over $1 billion and became a unicorn in 2014 because it has grown fast and provided innovative delivery methods.
4. NCSoft
NCSoft, founded in 1997 by T.J. Kim and based in Seoul, South Korea, became very successful early on thanks to popular MMORPG games like Lineage.
Initially focused on creating and publishing online games, NCSoft has become a global leader in the gaming industry and reached unicorn status in the 2000s.
It’s known for MMORPG games and has expanded worldwide, especially in North America and Europe. NCSoft, headquartered in Seoul, also has studios in other major gaming cities. They make a variety of online games, including Lineage, Guild Wars, and Blade & Soul.
People like their great graphics, fun gameplay, and how they involve players. They keep growing by making new games and trying new ideas.
5. Sendbird
Sendbird, founded in 2013 by John S. Kim and based in Seoul, South Korea, became very successful in 2021 when it got $100 million from investors, reaching unicorn status.
They also have offices in San Mateo, California. Sendbird makes tools for developers to add real-time messaging to apps. They’ve gotten a lot of money to grow and make better messaging tools. They work a lot in South Korea and the United States.
Sendbird’s platform lets businesses put chat, voice, and video into their apps easily. It’s used in e-commerce, social networks, and customer service to make apps more engaging and safe.
6. Naver
Naver, founded in 1999 by former Samsung employees and based in Seongnam, South Korea, became very successful in the early 2000s and is now one of the biggest internet companies in South Korea.
They have a big campus in Seongnam and offices and data centers across South Korea and other countries. Naver offers lots of online services, like a search engine, digital comics on Naver Webtoon, and cloud computing with Naver Cloud.
Their search engine is very popular in South Korea. Naver also does AI research, works on self-driving cars, and tries new things to stay ahead in technology.
7. KakaoTalk
KakaoTalk, founded in 2010 by Brian Kim and Sirgoo Lee and based in Jeju City, South Korea, is a popular messaging app. It lets you send free texts, make calls, share media, and chat in groups.
Kakao has offices in Jeju City, Seoul, and Pangyo Technovalley. Besides messaging, they offer KakaoPay for mobile payments, Kakao T for transportation, and Kakao Games for gaming. They keep adding new features to make the app better for users.
Kakao became very successful in 2014 when it grew fast with KakaoTalk and started other digital services.
The Future of Innovation in South Korea
The South Korean government is planning new initiatives to help more startups become unicorns. These include more funding, tax breaks, and simpler rules.
They’re also expanding programs for research and development and partnerships between universities and businesses.
Several trends, such as AI advancement and biotechnology, sustainability, and global expansion, could help unicorn startups grow even more in South Korea.
Additionally, a push for digital transformation in various industries will definitely create new opportunities for innovative startups.
Closing Thoughts
South Korea’s unicorn startups have taken Korea to a new era and boosted the national economy, as did Samsung and LG before. They create jobs, bring investment, and lead in new technology. The government greatly helps, and the country has great tech and values education. South Korea has fewer unicorns than the US and China, but it’s growing fast.
That said, South Korea is excellent for new businessmen and visionaries. If you’re interested in learning more about the South Korean technology startup scene, don’t hesitate to reach out to us.
