South Korea's new businesses fall for fifth year to 908,000, data agency says
In short
Gukga Deiteocheo (국가데이터처) reported on 22 October that new businesses in South Korea fell 1.5% in 2025 to 908,000, a fifth straight annual decline. The new-business rate was 11.7%, the lowest since the series began in 2011, and high-growth firms fell 15.9% to 4,534.
Read the full story 2 min read
The number of new businesses in South Korea fell for a fifth consecutive year in 2025, according to provisional business demography statistics released on 22 October by Gukga Deiteocheo (국가데이터처). New businesses totalled 908,000, down 14,000 or 1.5% from the year before. [ 1 , 2 , 3 , 4 ]
Newsis and Nocut News said this was the lowest level in eight years, since 2017, while Chosun Ilbo said it was the lowest in nine years, since 2016. The new-business rate, the share of new firms among active firms, was 11.7%, the lowest since the series began in 2011. Yonhap said it was down 0.3 percentage points from the previous year and had fallen for five years running from 15.6% in 2020; Chosun Ilbo gave the fall as 0.4 points. [ 1 , 2 , 3 , 4 ]
By sector, new businesses in accommodation and food service fell 11.0% to 128,000 and in real estate fell 8.6% to 155,000. Newsis also reported falls of 5.5% in manufacturing and 7.1% in construction, while wholesale and retail rose 6.2% to 244,000. Newsis said new businesses excluding real estate rose 0.1% to 754,000. An agency official told Newsis the decline appeared to reflect high prices and weak consumption, and Newsis added that the aftermath of martial law and political instability appeared to have dampened sentiment. [ 1 , 2 , 3 , 4 ]
Active businesses, those with sales or regular employees, rose 1.4% to 7.748 million. The one-year survival rate of firms founded in 2023 was 63.9%, down 0.5 points. Yonhap said it was the second straight fall and the lowest since 63.6% in 2018. The five-year survival rate of 2019 start-ups rose 0.1 points to 36.5%, which Yonhap described as a record high. [ 1 , 3 , 4 ]
High-growth firms, those with ten or more regular employees whose sales and employment grew an average of 20% or more a year over three years, fell by 855 (15.9%) to 4,534. Gazelle firms, high-growth firms registered four to five years, fell by 208 to 1,146. Nocut News also reported that firms with growth of 10% or more fell 15.0% to 14,897. [ 2 , 3 , 4 ]
Dissolved businesses in 2024 numbered 769,000, down 21,000 (2.7%), after a record 791,000 in 2023. The dissolution rate was 10.1%. Chosun Ilbo quoted an agency official as saying the fall appeared to reflect firms delaying closure because of closure-cost burdens rather than firms surviving because of good conditions. [ 1 , 2 , 3 ]
One-person active firms rose 1.9% to 6.217 million, 80.2% of the total, while firms with two or more workers fell 0.5% to 1.531 million. Chosun Ilbo and Yonhap pointed to an ageing of business owners; Chosun Ilbo said new firms led by people in their 70s or older rose 13.8% and those led by people in their 60s rose 1.0%, with declines in all other age groups. [ 2 , 3 ]
Why it matters
Outlets linked the decline to weak domestic demand, high prices and sluggish consumption. Chosun Ilbo described the figures as a warning sign of stalling dynamism in the business ecosystem, while the data also show the total number of active businesses rose.
Key facts
- New businesses totalled 908,000 in 2025, down 14,000 (1.5%) from a year earlier and the fifth consecutive annual fall. [ 1 , 2 , 3 , 4 ]
- The new-business rate, the share of new firms among active firms, was 11.7%, the lowest since the statistics began in 2011. [ 1 , 2 , 3 ]
- New businesses fell 11.0% in accommodation and food service and 8.6% in real estate, while wholesale and retail rose 6.2%. [ 1 , 2 , 3 , 4 ]
- The one-year survival rate of firms founded in 2023 was 63.9%, down 0.5 percentage points; the five-year survival rate was 36.5%, up 0.1 points. [ 1 , 2 , 3 , 4 ]
- High-growth firms numbered 4,534 in 2025, down 855 (15.9%). [ 1 , 2 , 3 , 4 ]
- Active businesses rose 1.4% to 7.748 million, while dissolved businesses in 2024 fell 2.7% to 769,000. [ 1 , 2 , 3 , 4 ]
Confirmed by several sources
- New businesses fell by 14,000 (1.5%) to 908,000 in 2025, the fifth straight annual decline, according to the agency's release on 22 October. [ 1 , 2 , 3 , 4 ]
- The new-business rate fell to 11.7%, the lowest since the statistics began in 2011. [ 1 , 2 , 3 ]
- Dissolved businesses in 2024 numbered 769,000, down 21,000 (2.7%) from 791,000 in 2023, and the dissolution rate was 10.1%, down 0.4 points. [ 1 , 2 , 3 , 4 ]
- The one-year survival rate of 2023 start-ups was 63.9%, down 0.5 points, while the five-year survival rate of 2019 start-ups rose 0.1 points to 36.5%. [ 1 , 2 , 3 , 4 ]
- One-person active businesses rose to 6.217 million, 80.2% of all active businesses, while businesses with two or more workers fell to 1.531 million. [ 2 , 3 ]
Still unclear
- How far 2025 new businesses fell relative to past years: Newsis and Nocut say lowest in eight years (since 2017), Chosun Ilbo says in nine years (since 2016). Outlets give different comparison years for the same 908,000 figure.
- The size of the fall in the new-business rate: Chosun Ilbo says 0.4 percentage points, Newsis, Yonhap and Nocut say 0.3. The documents disagree on this figure.
- Why dissolutions fell in 2024. Chosun Ilbo quotes an agency official as saying it appears to reflect firms delaying closure because of closure-cost burdens rather than firms surviving thanks to a good economy; the other documents do not give this explanation.
- The role of the martial law aftermath and political instability in weaker sentiment. Only Newsis states this as a likely factor; the agency quotes in the other documents mention high prices and weak consumption.