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South Korea's Startup Ecosystem: A Global Innovation Hub, Presented by Kiho Park, LB Investment at Invest Korea Summit 2024



Speaker Profile: Kiho Park

With over 35 years in Korea's venture capital industry, Kiho Park represents the evolution and maturity of Korea's startup ecosystem. A Yonsei University economics graduate (1988), Park began his career at KB Investment before holding key positions at STIC Investments (1999-2003). As CEO of LB Investment since 2019, he has grown the firm's Assets Under Management to 1.13 trillion won while identifying and investing in over 10 unicorn companies. His current roles as Chairman of Korea Core Industrial Technology Investment Association (KITIA) and Vice Chairman of Korean Venture Capital Association (KVCA) reflect his influential position in Korea's venture capital landscape. South Korea has emerged as one of the world's most dynamic startup ecosystems, powered by its robust technological infrastructure and innovative capacity. As highlighted in the 2021 Bloomberg Innovation Index where Korea ranked first globally, the nation has established itself as a powerhouse in various critical domains. The country's exceptional performance is particularly notable in R&D intensity (2nd globally), manufacturing value-added capabilities (2nd), high-tech density (4th), and research concentration (3rd).


Invest Korea Summit 2024, ⓒinhoocho.com

Key Highlights:


  • #1 in Bloomberg Innovation Index 2021

  • 99.96% household broadband penetration rate

  • World's leading digital infrastructure

  • 4th globally in startup ecosystem ranking


The foundation of Korea's startup success lies in its unparalleled digital infrastructure. With a household broadband internet penetration rate of 99.96%, the highest globally, Korea provides an ideal testing ground for new digital services and products. This sophisticated infrastructure, combined with advanced ICT capabilities, creates an environment where innovative ideas can quickly transform into viable businesses.


World's Best Digital Infrastructure


Korea's digital leadership is demonstrated through multiple metrics:


  • Internet Access: #1 globally (99.96% penetration)

  • High-Speed Internet Penetration: #1 (87.31%)

  • Mobile Internet Access: #1 globally

  • Mobile Internet Speed: #2 globally (105Mbps)


Invest Korea Summit 2024, ⓒinhoocho.com

This comprehensive digital infrastructure makes Korea an ideal testing ground for new technologies and digital services, supporting rapid innovation and adoption of new solutions.


Korean Unicorns: Dynamic Growth


Invest Korea Summit 2024, ⓒinhoocho.com

The ecosystem has produced remarkable results in terms of unicorn companies:


  • 22 official unicorn companies

  • 30+ potential unicorns in development

  • Notable unicorns include:

    • Toss

    • Dunamu

    • Yanolja

    • Musina

    • Kurly

    • Zigbang

    • And many others


Robust Venture Capital Environment

The Korean VC landscape shows remarkable stability and growth:

  • 249 registered venture capital firms

  • ~400 active venture investors including accelerators

  • 10+ VCs with $1B+ assets under management

  • $40B total accumulated venture capital resources


Invest Korea Summit 2024, ⓒinhoocho.com

The Korean venture capital ecosystem has shown remarkable resilience and growth. Despite global market fluctuations, the country has maintained strong investment momentum, with a 24% increase in investment activity in 2024. The venture capital landscape comprises 249 registered firms, with approximately 400 active investors when including accelerators and financial institutions. Notably, more than ten venture capital firms manage assets exceeding $1 billion, contributing to a total accumulated venture capital pool of around $40 billion.


Investment Trends and Recovery


The VC investment landscape shows strong resilience:


  • 2023 investments totaled around $8.4 billion

  • 24.6% YoY growth through Q3 2024

  • Steady growth trend since 2015

  • Key investment sectors:

  • ICT Services/Platforms/SaaS (20%)

  • Bio/Healthcare (15%)

  • Hardware/Devices (14%)


Invest Korea Summit 2024, ⓒinhoocho.com

The ecosystem has successfully produced 22 unicorn companies, with an estimated 30+ potential unicorns in the pipeline. These companies represent two distinct generations: the first focused on dominating the local market, while the second generation is emerging in deep tech sectors, particularly in semiconductors and memory technology. This evolution demonstrates the ecosystem's maturity and its capacity to nurture globally competitive companies.

Vibrant IPO Market

Exit opportunities in Korea are particularly robust, anchored by the KOSDAQ market, which has supported over 100 IPO companies. The active secondary market and M&A environment provide multiple pathways for successful exits, making Korea one of the most attractive destinations for startup investments globally.


Invest Korea Summit 2024, ⓒinhoocho.com

Korea maintains one of Asia's most active IPO markets:


  • Strong VC-backed IPO performance:

    • 2020: 86 IPOs (61.9% VC-backed)

    • 2021: 100 IPOs (62.0% VC-backed)

    • 2022: 112 IPOs (59.8% VC-backed)

    • 2023: 114 IPOs (54.3% VC-backed)

    • 2024 Q3: 73 IPOs (60.3% VC-backed)


Global Ecosystem Standing


Seoul's startup ecosystem demonstrates significant global presence:


Invest Korea Summit 2024, ⓒinhoocho.com

  • Ranked 9th globally among startup ecosystems

  • Key metrics:

    • Development Score: 61.1

    • Growth Score: 62.1

    • Capital Raised: $39.3B

    • Exit Value: $71.6B

    • Number of Exits: 269


LB Investment's Track Record


Under Park's strategic direction, LB Investment has established itself as one of Korea's premier venture capital firms:


  • 28 years of investment experience

  • 650+ portfolio companies

  • 120+ global top-tier investments

  • 10+ unicorn companies in portfolio


As presented by Kiho Park, LB Investment exemplifies the sophistication of Korea's venture capital industry. With 28 years of experience and investments in over 650 companies, including more than 120 that have achieved global top-tier status, the firm demonstrates the ecosystem's capacity to nurture world-class companies.


Invest Korea Summit 2024, ⓒinhoocho.com

The Korean startup ecosystem's strength lies in its comprehensive support structure, combining technical infrastructure, manufacturing capability, and abundant capital. The country's position as a global testing ground for new products and services, coupled with strong government support and advanced digital infrastructure, creates an ideal environment for startup growth and innovation. As Korea continues to strengthen its position in global technology supply chains, its startup ecosystem is well-positioned to produce the next generation of globally competitive companies.


This ecosystem benefits from Korea's unique advantages: experienced human resources, global set makers, world-class digital infrastructure as a testing bed, globally competitive industries like semiconductors and batteries, and proactive government support. These factors collectively make Korea an increasingly attractive destination for global investors looking to participate in the next wave of technological innovation.

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