The number of employees at South Korean startups rose just 0.6% in the first half of this year, according to data released on the 25th.
The figures came from TheVC, a venture investment data platform, in its "First-Half 2026 Startup Hiring Trends" report. Among 4,790 startups and unlisted small and mid-sized companies with five full years of employment data, the total headcount stood at 191,150 as of the end of June, up 0.6% from 190,078 at the end of last year, TheVC said.
Startup hiring growth has continued to slow. The annual hiring growth rate fell from 4.0% in 2023 to 2.5% in 2024 and 1.8% last year.
The gap between funded and unfunded companies was especially stark. Companies that raised investment over the past year expanded their workforce by 10.4%, from 39,190 at the end of last year to 43,249 at the end of June. Over the same period, companies that did not raise funding cut their headcount by 2.1%, from 132,168 to 129,365.
Among funded companies, early-stage firms such as those at the seed and Series A rounds posted the largest gain, at 22.6%. That suggests the recent cooling of the early-stage investment market could weigh on the startup job market going forward.
By industry, manufacturing and chemicals recorded the largest hiring increase, growing 10.8% over the six months. Semiconductors and displays followed at 8.8%, and fashion and beauty at 8.3%. Gaming saw the steepest decline, shedding 8.9% of its workforce over the period, followed by content at 6.3%.
