Over the past decade, South Korea has emerged as one of the fastest-growing innovation ecosystems in the world. Just ten years ago, Korea had around 200 scaleups – today, that number has grown tenfold, surpassing 2,100. This remarkable growth has been powered in large part by strong government policies that not only encouraged startup development but also set clear KPIs around innovation. These efforts have positioned Korea to become the leading startup ecosystem in Asia outside of China and India.

Korea is now on track to overtake Japan in the number of scaleups.

When it comes to capital invested, it has already pulled ahead – $76B vs $46B – making it one of the few global innovation powerhouses in the region. The contrast with other fast-growing ecosystems like Australia is particularly telling. A decade ago, Australia had a slightly larger scaleup base than Korea (281 vs. 218). Today, Korea has surged ahead with 2,127 scaleups, roughly 35% more than Australia’s 1,580.

This rapid transformation hasn’t gone unnoticed.

As of 2025, 38 Fortune Global 500 companies have established an innovation presence in Korea, primarily through specialized R&D centers. The drivers? A vibrant startup ecosystem, a growing VC landscape (explored in detail in our report and accessible through an online directory), and a deep specialization in frontier technologies – notably robotics, AI, industrial automation, and advanced manufacturing. It’s no surprise that industrial giants like Fincantieri have recently joined the growing list of global corporates placing innovation boots on the ground in Korea.

Korea isn’t just catching up – it’s becoming a reference point for how national innovation strategies can drive global relevance.