Business · Companies · 1 hr ago
South Korea’s five-year business survival rate reaches 36.5%
In South Korea, just 36.5% of new businesses survive five years, although that is the highest rate since records began.
The rate rose slightly from the previous year, but more than six in 10 new businesses still close within five years.
The one-year survival rate fell to 63.9%, its lowest level since 2018, after declining for two years in a row.
The number of new businesses fell for a fifth straight year, reaching 908,000 last year.
The startup rate—the share of all active businesses that are new—also fell to a record low of 11.7%.
New hotels and food businesses dropped 11%, a steep decline in sectors popular with self-employed people.
Officials said rising business closures may be held back by the cost of shutting down, so they will need to watch the trend before judging whether conditions are improving.
South Korea’s five-year business survival rate reached 36.5%, the highest level since the statistics began.
The rate rose 0.1 percentage points from the previous year and has increased for eight consecutive years since 2016.
More than six in 10 new businesses still do not survive for five years.
The number of new businesses fell 1.5% to 908,000 last year, marking a fifth consecutive annual decline.
The share of active businesses that were new businesses fell to a record low of 11.7%.
- Who
- New businesses in South Korea.
- What
- Their five-year survival rate reached 36.5%, a record high since the statistics began.
- When
- The figures were reported on October 23, 2026, in statistics for 2025.
- Where
- South Korea.
- Why
- Not stated
This story does not have two clearly opposing sides.
The five-year survival rate increased for eight consecutive years.
The share of active businesses that were new businesses was 15.6%.
The one-year survival rate for businesses started in 2023 was 63.9%, down 0.5 percentage points from the previous year.
South Korea’s National Data Office reported a five-year survival rate of 36.5% in its 2025 business demography statistics.
- Five-year survival rate
- 36.5%
- Change from previous year
- Up 0.1 percentage points
- New businesses last year
- 908,000
- New-business share of active businesses
- 11.7%
- One-person businesses
- 6.217 million, or 80.2% of active businesses