A recent report by the Ministry of Small and Medium Enterprises and Startups reveals that the percentage of first-time startups among small businesses in South Korea has decreased, indicating a shift in entrepreneurial activity. The survey, part of the '2024 Small Business Status Survey', shows that while the overall number of small businesses rose to approximately 6.13 million, the proportion engaging in first-time startups plummeted to 60.7% from last year's 75.6%. Conversely, the re-startup segment has doubled, soaring to 38.8% from 19.6%, suggesting that many entrepreneurs are now returning to the market after initial attempts.

In terms of employment, the total number of employees in small businesses has seen a modest increase, with about 9.61 million employees as of 2024, up by 0.6% from the previous year. However, the average number of employees per business has slightly decreased, indicating a rise in smaller, sole proprietorships, which are becoming more common due to economic pressures or shifts in the labor market. Regions such as Seoul and Busan have recorded declines in workforce numbers while experiencing overall business growth, raising concerns about job availability and economic viability in these urban areas.

The report also highlights changes in the startup preparation period and costs. The average startup preparation time is reported to be approximately 13.7 months, with an average startup cost of 8.3 million KRW, which shows a considerable decrease from last year's figures. Notably, the motivations for entrepreneurship have shifted, with over 65% of respondents expressing a desire to manage their businesses independently, while 18.1% cited financial incentives as a primary driver. This suggests that while enthusiasm for entrepreneurship remains high, the challenges associated with traditional employment are also shaping the current startup landscape.