Keep an Eye on These 10 Rising South Korean Startups

Over the past ten years, the startup landscape in South Korea has flourished, attracting significant attention and investment from key global technology corporations and Western venture capital firms. The nation’s robust economic stature within Asia has facilitated this development. Local startups have thrived, thanks to financial injections from giants like Google, Meta, Qualcomm, and Samsung, alongside intense backing from venture initiatives. The supportive efforts by the Korean government, through the establishment of innovation centers, incubators, and accelerators, have further catalyzed this growth.

As of today, South Korea is recognized as the ninth-leading nation globally regarding its unicorn count, according to Statista, with Seoul emerging as a prime spot for tech startup creation.

However, like many parts of the globe, South Korean startups have faced challenges due to economic downturns, leading to cost reductions, layoffs, and a challenging environment for securing growth-stage funding. A general difficulty in raising capital among Asian startups has been noticeable since early 2022. Following this trend, venture capital investment in South Korea saw a decline to approximately 5.4 trillion KRW ($4 billion) in 2023, down from 6.8 trillion KRW ($5.1 billion) the previous year.

The year 2024 is anticipated to be a defining moment for numerous Korean startups, particularly with several high-profile names planning on Initial Public Offerings (IPOs) either locally or in the U.S. Here are some key startups to watch:

Yanolja

• Founder: Su-jin Lee
• Total funding raised: $1.95 billion
• Key investors: SoftBank Vision Fund, GIC, Booking, SkyLake Investment
• Revenue in 2023: $578 million (766.7 billion KRW)

Founded in 2005 by Su-jin Lee, Yanolja has redefined the love hotel industry in Korea, transforming these establishments from their traditional perception to a trendy short-term lodging option for the younger demographic and tourists, with a presence in over 200 countries now.

The enterprise achieved unicorn status in June 2019 after securing a $180 million Series D financing round spearheaded by GIC and Booking. A subsequent Series E investment round in 2021 saw SoftBank Vision Fund II pour approximately $1.7 billion into Yanolja, hence estimating the company’s value between $7 billion and $9 billion.

In a strategic move towards a Nasdaq debut, Yanolja recently established a subsidiary in Manhattan, Yanolja US. The company announced last December the appointment of Alexandre Ibrahim, a former New York Stock Exchange executive, as its CFO. Yanolja is rumored to be prepping for a $400 million U.S. IPO, which might position its valuation between $7 billion and $9 billion.

Yet, the financial crunch facing Singapore-based e-commerce entity Qoo10 presents a potential hurdle for Yanolja’s Nasdaq listing ambitions. After selling Interpark Commerce to Qoo10 in April 2023 with a promised full payment by 2026, Yanolja has encountered delays in receiving the outstanding balance.

Viva Republica (Toss)

• Founder: Seung-gun Lee
• Total funding raised: $1.34 billion
• Key investors: Alkeon Capital, Altos Ventures, Aspex Management, Bond Capital, Goodwater Capital, GIC, Greyhound Capital, Kleiner Perkins, Korea Development Bank, PayPal, Qualcomm Ventures, Ribbit Capital, Sequoia China
• Revenue in 2023: $994.1 million (1.37 trillion KRW)

Disenchanted by the cumbersome nature of South Korea’s online payment systems, former dentist Seung-gun Lee established Viva Republica in 2015 behind the financial super app, Toss. Quickly resonating with users equally frustrated by existing payment hurdles, Toss surged in popularity. Achieving unicorn status in just three years, the company’s valuation was pegged at about $7 billion after a sizeable Series G funding round in December 2022. Toss currently boasts over 19 million active monthly users.

Viva Republica has set its sights on a local stock market debut next year, riding on a substantial revenue of $994.1 million in 2023. The firm is optimistic about reaching profitability within this fiscal year.

Kurly

• Founder: Sophie Kim
• Total funding raised: $761 million
• Key investors: Anchor Equity Partners, Aspex Management, CJ Logistics, DST Global, Hillhouse, Hugh Ventures, Mirae Asset Venture Investment, Sequoia Capital China, SK Networks, Translink Capital
• Revenue in 2023: $1.5 billion (2.07 trillion KRW)

Kurly, initially eyeing an IPO, experienced a shift in plans due to market conditions, despite leveraging the surge in demand during the pandemic. The grocery delivery service postponed its U.S listing intention in favor of one in Seoul in 2023, which also was put on hold. Last year, the company expanded its product line, venturing into cosmetics, personal care, and nutritional supplements, aiming to enhance its financial metrics pre-IPO.

Achieving profitability for the first time in December 2023 was a significant landmark since its 2015 inception, with the company openly stating its listing ambitions post-profitability. Despite a lucrative valuation of $3.3 billion in a 2021 fundraise, recent reports indicate a valuation correction to about $669 million.

Dunamu

• Founder: Hyoung Kim and Chi-hyeong Song
• Total funding raised: $522 million
• Key investors: Anchor Equity Partners, Altos Ventures Management, Hana Financial Group, Hanwha, Stonebridge Capital, Woori Technology Investment
• Revenue in 2023: $751 million (1.02 trillion KRW)

Originating as a stock trading service in 2012 before transitioning to a cryptocurrency exchange in 2017, Dunamu operates Upbit, Seoul’s leading crypto platform. The firm stood out by obtaining South Korea’s first virtual asset service provider license in 2021. Despite the volatile nature of the crypto market affecting its valuation from a high of $17 billion in 2022 to $2.2 billion following market downturns, Dunamu noted a significant profit increase in 2023, hinting at a potential Nasdaq IPO.

Musinsa

• Founder: Man-ho Cho
• Total funding raised: $330 million (~ 430 billion KRW)
• Key investors: IMM Investment, KKR, Sequoia Capital, and Wellington Management
• Revenue in 2023: $662.5 million (883 billion KRW)

Musinsa, a leader in the South Korean fashion e-commerce space, boasts a comprehensive offering of over 8,000 local and international brands catering to a vast user base of 13 million. The platform competes among giants like Kakao’s Zigzag, Shinsegae’s W Concept, and Naver’s Brandi, exemplifying the intense rivalry in this sector. After achieving a significant gross merchandise volume (GMV) in 2022, the company is navigating towards an IPO, scheduled tentatively for 2025, following a substantial Series C funding round.

Danggeun Market

• Co-Founders: Gary Kim, Paul Kim
• Total funding raised: $205 million
• Key investors: Altos Ventures, Aspex Management, Capstone Partners, DST Global, Goodwater Capital, Kakao Ventures, Reverent Partners, SBVA, and Strong Ventures
• Revenue in 2023: $96.3 million

Founded by Gary Kim and Paul Kim in 2015, Danggeun Market operates Karrot, a leading hyperlocal marketplace for pre-owned goods, extending its services globally. Achieving profitability in 2023, the platform has captivated users in markets like the U.S. and Canada, marking a strategic milestone towards future public listing ambitions, although the definitive timeline remains under evaluation for a more robust financial standing.

Bucketplace (O!House)

• Founder: Seungjae Lee
• Total funding raised: $261 million
• Key investors: BRV Capital Management, Capstone Partners Korea, Industrial Bank of Korea, KB Investment and KB Investment & Securities
• Revenue in 2023: $181 million

Bucketplace, through its app OHouse, initially cultivated a home decorating and interior design community, which has since evolved into a comprehensive suite encompassing home improvement, repairs, furniture delivery, and even waste collection services. Following a significant Series D funding round, the company’s focus on deepening its market foothold has remained unchanged, despite declining a potential investment from Alibaba. Anticipating a similar trajectory to that of California’s Houzz, Bucketplace is gearing up for a public offering.

Moloco

• Founder: Ikkjin Ahn, David Sehyuk Park
• Total funding raised: $200 million
• Key investors: DAOL Ventures, Draper Athena, EDBI, Fidelity Management & Research Company, Mirae Asset, Samsung Ventures, Smilegate Investment, Tiger Global Management
• Revenue in 2023: $300 million

Moloco leverages machine learning technology to empower mobile app developers across various sectors, including gaming, social networking, and fintech, in refining their marketing strategies through first-party user data. The company’s path towards a Nasdaq IPO is being meticulously planned, with a valuation exceeding $2 billion, positioning Moloco as a formidable player in the adtech space.

ZigBang

• Founder: SungWoo Ahn
• Total funding raised: $248 million
• Key investors: Altos Ventures, BlueRun Ventures, Goldman Sachs Investment Partners, Korea Development Bank, Hana Financial Group, and IMM Investment
• Revenue in 2023: $97 million

ZigBang has firmly established itself in the real estate technology arena, with its strategic move towards the smart home industry post-acquiring a business unit from Samsung SDS. Despite facing financial challenges amid a cooling real estate market, its pre-emptive series E funding round positions it as a company with significant growth potential.

Korea Credit Data

• Founder: Kelvin Dong-ho Kim, Seong-ho Lee
• Total funding raised: $196 million
• Key investors: D-Camp, Fiserv, GS Holdings, Hanwha Life, Kakao, KB Securities, Kclavis, KT Investment, LG Uplus, Morgan Stanley Tactical Value, QUAD, Pavilion Capital, Playmake Ventures, Samsung Fire & Marine Insurance
• Revenue in 2023: $103 million

Korea Credit Data, launched in 2016, serves over 2 million SME merchants with a suite of financial services in South Korea. Its flagship product, Cashnote, enables business owners to manage a comprehensive set of financial operations efficiently. With a substantial valuation following its latest funding round, the fintech pioneer is on a clear trajectory toward an anticipated public listing in the near future.