Highest Monthly Figure
The number of newly established companies reached a record high in June, based on monthly figures.
According to a report about the trend of newly-founded corporations published by the Small and Medium Business Administration (SMBA) on July 30, 8,778 new companies were established in June. The number is increased by 23.1 percent, or 1,645 firms, from the same month last year, and is the highest figure on a monthly basis.
By industry, the number of new companies in the manufacturing business reached 1,962, accounting for 22.4 percent of the total. The figures in the wholesale and retail industry and the leasing real estate industry amounted to 1,924 and 897, respectively. Compared with June last year, the scale rapidly increased, based on the leasing real estate industry, the wholesale and retail industries, and the manufacturing industry. In terms of growth rates, the leasing real estate industry showed the highest figure with 57.4 percent year-on-year.
By age of the founder, those in their fourties founded 3,366 companies, accounting for 38.3 percent of the total, following those in their fifties with 2,286 firms or 26 percent, and those in their thirties with 1,917 firms or 21.8 percent.
Although the market environment is currently unfavorable due to the decrease of consumption from the Sewol ferry tragedy last year and the MERS virus outbreak scare this year, the number of newly-established companies has reached a record high. This is largely due to the Park Geun-hye administration’s efforts to create a venture start-up ecosystem, including Creative Economy Innovation Centers, the SMBA said.