Lim Jae-woo, a 26-year-old business administration student at Korea University, founded Alphamonto, a men’s styling service company, last March. The company offers consulting on hair styling and outfits for subscribers, considering their profession and age, in collaboration with fashion YouTubers. Lim said, “I chose entrepreneurship not just to make a lot of money, but to prove myself as an entrepreneur who continually takes on challenges,” adding, “I think this is the perfect age to handle the risks that come with starting a business, and there’s no need to join the job market just to get a ‘large company’ name card.”
The number of Generation Z individuals (born 1995-2004) choosing entrepreneurship over employment is rapidly increasing in South Korea. According to the Ministry of Education, the number of companies started by four-year university students (including graduates) nationwide reached 1,951 last year, up 23.4% or 370 companies from 1,581 in 2022. Student-founded companies have steadily increased each year since statistics were first compiled in 2015 (861 companies), reaching an all-time high last year. The industry considers this an unusual phenomenon, given that startup investment has been shrinking since 2022 due to economic downturns.
Some argue that students are forced into entrepreneurship due to the narrowing job market. However, Gen Z entrepreneurs interviewed by Chosunilbo had the opposite view. They said, “This is the perfect time to take on challenges, so why not?” and “Entrepreneurship first, employment can come later.”
Kim Jae-sung, 26, a student at Chung-Ang University’s Department of Life Sciences, founded Fitrace in May last year. Kim said, “The idea came from trying to solve problems I experienced with existing products while working out, so I gathered a team and started the company. I believe now is the best time to face uncertainty, so I took on the challenge.” Jeong Hyun-seok, 24, a student in the Department of Electrical and Electronic Engineering at the same university, who joined Kim’s startup, said, “I felt that experiencing entrepreneurship during university would be a huge advantage in life, so I decided to join,” adding, “We wanted to leverage our ‘lean’ approach to try things big companies can’t.” The term “lean” is frequently used by today’s Gen Z entrepreneurs. It refers to quickly launching products and services with just an idea for immediate market testing, unlike traditional companies with lengthy processes from product planning to profitability assessments.
