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Korea’s handling of the COWID-19 crisis was praised worldwide and start-ups played an important role. Korea used technology to prevent the spread of a virus that would affect countries around the world by 2020. While the current coronavirus pandemic has affected almost every industry, the Korean start-up ecosystem has shown resilience by effectively attracting money from investors for local start-ups.

Korean starters appear in the middle of the pandemic

The successful use of public-private partnerships and public policies has fostered the development of the ecosystem of Korean start-ups. However, the first effects of the pandemic led to a fall in the number of investment transactions in February 2020. The efforts of the government and the resilience of the start-ups have helped the ecosystem thrive even in this crisis.

COMEUP 2020, Korea’s largest launch event, was also held in November 2020. Although this was a virtual event, some leading companies and brands participated. The event was attended by 1,076 starters from 88 countries, 120 of which were selected as COMEUP STARS. Of the 120 starters, 59 were Korean.

According to CB Insights, an international research firm, there are eleven unicorns in South Korea. This makes Korea the fifth largest country in the world. The most successful startups are based in Seoul, and the city plans to become one of the top five hubs for startups in the world by 2022.

Many start-ups have managed to obtain substantial financing, even in times of crisis. In the second half of the year, Superbin raised 20 billion in funding. The company develops solutions for the disposal of plastic waste. The financing round was led by TBT, Humax, a set-top box manufacturer, and Fine Investment, an asset manager. Now valued at 100 billion, Superbin has recently developed Nephron, an emptying machine that rewards people who recycle plastic.

Superbin is not the only startup that surprised the market by raising money for its innovation model, although the tourism and travel industry was hit hardest, but Myrealtrip was able to win $40 billion in July 2020. Altos Ventures led the financing round for this company, which offers foreign package holidays. Smilegate Investment and IMM Investment as existing investors and Axiom Asia Private Capital, the Business Development Bank of Korea, Tekton Ventures and Partech Partners as new investors in this tourism start-up also participated in the financing round. The company has refocused on local products from abroad and domestic sales have quadrupled in recent months.

After the coronavirus outbreak and the announcement of the closure of schools and universities, Korean edtech start-ups were the first to help by offering their products and services free of charge, so that students would not miss out on the chance of quality education. The Korean Minister of Education has rewarded several start-ups in the education sector for their valuable contribution to society.

The launch of EdTech, which operates an online education platform called Riid, has benefited from the momentum of the EdTech sector during the current pandemic. The company has won 50 billion from its investors. The company offers tutoring for those preparing for the English exam in the country. It has recently begun to implement an education system that uses artificial intelligence. The company plans to expand its global partnerships and introduce new services with financing.

In addition to the travel and tourism industry, popular fashion brands have also suffered significant sales losses. However, this crisis has turned out to be a great opportunity for online fashion brands. Must, a fashionable startup, won 15 billion and impressed its investors with 80% growth. Because of social exclusion and other limitations, people were reluctant to use everyday services. Laundrygo, a start-up laundry service, launched a non-physical contact service and raised 17 billion. A young food company that uses a marketplace to connect consumers to retailers called Kurly has also managed to raise $150 million in funding.

Seegene was one of the first Korean biotech companies to produce test kits for COVID-19. They soon received government approval and their initiative was a great success for the company and the country to contain the spread of the virus.

The South Korean Starting Ecosystembecomes the following.

The ecosystem of Korean start-ups offers a special future for the Korean economy. According to market experts, the Korean government’s efforts to revitalise the economy affected by the crisis will further stimulate start-ups with innovative technologies and business models, despite the current VID-19 crisis.

Follow one of the brightest starting ecosystems. South Korea will always amaze you.

If you think that a news story, a start-up or any other function should be included in this story, please send a message to [email protected] We will be happy to review them and update them if necessary.

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