Is South Korea a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

South Korea has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what South Korea gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in South Korea

Funding is one of the most critical ingredients in building a successful startup – and South Korea offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

South Korea's early-stage funding scene is dynamic, supported by notable VC firms like BonAngels Venture Partners and Kakao Ventures, known for their focus on seed and early-stage investments. Government initiatives also play a crucial role, with programs like the K-Startup Grand Challenge offering significant equity-free funding and support for both local and international startups. The Ministry of SMEs and Startups actively provides grants and has launched funds aimed at early-stage companies. However, the environment isn't without its hurdles. While seed funding saw a significant surge in 2024, overall VC funding for Korean startups has declined since its peak in 2020, impacted by macroeconomic factors. Startups also face intense competition from established conglomerates and challenges in attracting top talent. Despite these challenges, government efforts and active early-stage investors continue to nurture the ecosystem.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

South Korea has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

South Korea has a dynamic startup and innovation culture, actively fostered by the government and large corporations. Seoul is a major hub with numerous coworking spaces and a high concentration of accelerators and incubators. The country hosts various tech events and conferences throughout the year, facilitating networking and industry insights. While there's significant entrepreneurial activity, particularly in established businesses, the rate of early-stage entrepreneurship is comparatively lower than in some other innovation-driven economies. The ecosystem offers substantial government support and funding programs, including initiatives specifically for early-stage startups and those looking to globalize. However, some programs and investments also heavily favor more mature startups or are structured as competitive, standardized challenges like the K-Startup Grand Challenge, which offers significant support but within a program framework. Personalized, one-on-one support exists within some accelerators and government programs, but the scale of government initiatives often leans towards structured support.

For many entrepreneurs, the energy and resources available in South Korea can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like South Korea, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in South Korea is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

South Korea boasts a highly educated workforce with a strong emphasis on STEM fields, providing a significant talent pool for startups. Prestigious universities like KAIST, Seoul National University, and Hanyang University are key in nurturing skilled professionals and fostering entrepreneurial spirit through dedicated programs and industry collaboration. The local talent excels in industry-specific skills crucial for the startup ecosystem, particularly in IT, software development, AI, data analytics, cybersecurity, biotechnology, and engineering. This expertise supports entrepreneurial growth by providing a skilled workforce capable of innovation and technological advancement. However, intense competition for experienced professionals and specific skill shortages in cutting-edge areas can pose challenges for startups. The government also supports attracting foreign talent to address some gaps.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in South Korea can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

South Korea boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

South Korea offers a robust ecosystem for startups, featuring advanced digital infrastructure and numerous support systems. This includes co-working spaces, accelerators like SparkLabs and Born2Global Centre, and incubators such as Seoul Startup Hub. These resources provide mentorship, networking, and funding opportunities. The government plays a significant role through initiatives like K-Startup and TIPS (Tech Incubator Program for Startups), offering substantial funding, R&D support, and programs aimed at global expansion. Programs like the K-Startup Grand Challenge also attract and support international startups. This comprehensive support, including financial aid and strategic guidance, helps businesses innovate and scale in the competitive market.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in South Korea. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can South Korea Be Considered the Best Place to Launch a Startup?

There’s no doubt that South Korea provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in South Korea face significant challenges. Competition is intense, particularly from well-established conglomerates (chaebols) that dominate many sectors. While the cost of living, especially in Seoul, is high and can impact operational costs, the cost of starting a business itself can vary. Regulatory issues also pose hurdles, with complexities in navigating local laws and unclear regulations in certain emerging areas like non-face-to-face medical treatment and those involving Corporate Venture Capital investments. Despite government support initiatives, these barriers require careful planning and localization strategies.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in South Korea or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while South Korea offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash