South Korea’s once-thriving startup scene is grappling with a slowdown. Only two Korean startups—Rebellions and ABLY Corporation—reached unicorn status this year. Unicorns are startups whose valuations exceed $1 billion.
During the pandemic, the startup sector thrived as investments surged on the back of ultra-low interest rates. But the industry is now struggling to attract global funding exceeding 100 billion. Experts are concerned that ongoing geopolitical tensions and recent political risks in Korea could prolong this period of uncertainty.
AI chipmaker Rebellions recently achieved unicorn status after merging with rival Sapeon Korea on Dec. 2, according to data compiled by ChosunBiz and Startup Alliance on Dec. 13. The merged entity is valued at 1.3 trillion won, or roughly $1 billion.
However, some industry insiders question whether Rebellions can be considered a unicorn since the merger involved a company backed by SK Telecom, Korea’s telecommunications giant.
ABLY Corporation, a fashion platform operating brands like Ably, 4910, and Amood, also reached unicorn status after securing a 100 billion won investment from China’s Alibaba Group, raising its valuation to 3 trillion won.
This year’s numbers pale in comparison to last year, when four new startups—fabless semiconductor company Fadu, content production company Ark Media, beauty tech company APR, and resale platform Kream—joined the unicorn list.
