The number of new corporations in the Busan area has shown a notable increase in the first half of 2026, indicating a rebound in the startup market.
The rise in foreign tourists and major development projects appear to have stimulated entrepreneurial sentiment in the service sector and specific industries. However, domestic-focused sectors such as retail and construction remain subdued, necessitating a multifaceted analysis of the causes and tailored policy responses.
According to a report released by the Busan Chamber of Commerce and Industry on July 30, a total of 2,317 new corporations were established in Busan during the first half of this year.
This figure represents a 9.2% increase compared to the same period last year (2,122 corporations) and a 2.5% increase from the previous half-year (2,261 corporations). The number of new corporations has been on a steady recovery trajectory since the second half of 2024, when it reached 2,100.
Considering the unique circumstances from 2020 to the first half of 2022, when involuntary small startups surged to around 3,300 due to the impact of the COVID-19 pandemic, the recent trend suggests a genuine recovery in the startup market.
A particularly noteworthy aspect is the positive impact of the increase in tourists on the startup market. The Busan Chamber of Commerce identified the rise in foreign tourists and tourism spending as key factors behind the expansion of new corporations.
In fact, new corporations in the service sector numbered 604, reflecting a 10.6% increase from the same period last year, while transportation-related businesses, including shipping and passenger transport, also grew by 16.9% to 97 corporations.
A representative from the Chamber's research team stated, "The increase in foreign tourists and their spending in Busan likely had a positive effect on the entrepreneurial sentiment in related industries such as services and transportation."
The information and communication sector, along with real estate and equipment rental, also saw significant growth. The information and communication sector recorded 208 new corporations, a 48.6% increase from the previous year, driven by major developments such as the designation of the Eco Delta City data center as a special development zone.
Real estate and equipment rental also saw a 17.4% increase, totaling 250 new corporations, attributed to the influx of investment demand following the end of the capital gains tax exemption for multiple homeowners in non-regulated areas.
However, while the overall total has increased, the state of the consumer economy presents a different picture. The retail sector, which accounts for the largest share (26.7%) of all new corporations, saw a 4.6% decrease to 618 corporations compared to the same period last year, due to worsened entrepreneurial sentiment amid high inflation and exchange rates.
The construction sector also faced a decline, with a 4.3% drop to 156 corporations, reflecting the ongoing chill in industries closely tied to everyday consumers.
This survey is based on data collected from the Busan District Court's registration office, categorizing the number of corporate establishments by industry. Therefore, it does not include direct causal relationships between the increase in tourists and corporate establishments, nor does it separately classify tourism-related specialized corporations.
Additionally, it is concerning that 82.5% of all new corporations are small businesses with capital of less than 50 million won (1,911 corporations).
There are calls for advanced follow-up analyses to assess whether these newly established corporations are generating meaningful employment and sales, and to determine their survival rates one to three years after overcoming the initial challenges.
Rather than resting on the increase in establishment numbers, it is crucial for local governments and relevant agencies to collaborate on cross-analysis of data and implement tailored support measures to enhance the actual survival rates of small businesses.
* This article has been translated by AI.
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