The bleak outlook for the startup ecosystem is primarily driven by a contracting investment market and the ongoing economic recession. (Image courtesy of Pixabay/CCL)
SEOUL, Oct. 5 (Korea Bizwire) – A recent survey has revealed that 42.7% of startup founders in South Korea view the current startup ecosystem negatively, highlighting growing concerns over the challenging business climate in one of Asia’s tech hubs.
The survey, conducted by Google as part of its ChangGoo program, polled 100 startup leaders between September 12 and 27. It found that 8.7% of respondents were “very negative” about the current state of the startup ecosystem, while 34% were “negative.”
This pessimism outweighed those with neutral (33%) or positive views (24.3%, including 2.9% who were “very positive”).
The ChangGoo program, an annual initiative from Google Play in collaboration with the Ministry of SMEs and Startups and the Korea Institute of Startup and Entrepreneurship Development, aims to support domestic app and game developers.
Economic headwinds and a shrinking investment market were cited as the primary reasons for the gloomy outlook. In response to these domestic challenges, many startups are looking overseas for growth opportunities.
The survey found that 37.9% of startups have already expanded into foreign markets, while 52.4% are considering such moves. North America, Southeast Asia, and Japan emerged as the most popular target markets for international expansion.
Despite the challenging environment, the survey revealed some positive trends. Nearly half of the startups surveyed (47.6%) reported already incorporating AI technology into their app or game development processes, with an additional 41.7% planning to adopt AI in the near future.
Furthermore, the job market in the startup sector appears to be robust, with 85.4% of startups indicating plans to hire within the next year.
Ashley Song (ashley@koreabizwire.com)
