SEOUL, KOREA - The number of new start-ups during the first quarter has surpassed the 20,000 level for the first time. But there were too many "micro" business start-ups whose capital was 10 million won or less, with too many new companies headed by middle-aged entrepreneurs. 

 

According to the Small and Medium Business Administration on April 29, the number of newly established firms during the first quarter of this year was 20,761, a record-high level since the administration has begun collecting data in 2003. This is 9.4 percent higher than the same quarter last year when the comparable figure was 18,984. During the month of March, the number rose to 7,195, a monthly high and up 13.2 percent from the same month a year ago.

 

In terms of age of the founders, the percentage of the firms headed by those in their 20s and younger declined 5.6 percent from a year ago while those established by middle-aged entrepreneurs in their 40s and 50s increased 9.6 percent and 13.5 percent, respectively, which implies that business start-up is led mainly by those who are laid off and forced to open new commercial establishments out of necessity. By industrial sector, manufacturing increased 14.9 percent from a year ago while construction and services rose 13.7 percent and 6.2 percent, respectively.