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Crowdinvesting - South Korea

South Korea

The total transaction value in the Crowdinvesting market in South Korea is projected to reach €9.32m in 2024.
When comparing globally, it is evident that the highest transaction value is expected the United Kingdom (€564m in 2024).
South Korea's crowdinvesting market is rapidly expanding, driven by a tech-savvy population and a growing interest in innovative startups.

Key regions: Europe, Australia, Brazil, China, Israel

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Analyst Opinion

The Crowdinvesting market in South Korea is experiencing significant growth and development.

Customer preferences: South Korean investors are increasingly turning to crowdinvesting as a way to diversify their investment portfolios and gain exposure to innovative startups. The younger generation, in particular, is showing a strong interest in crowdinvesting, as they are more comfortable with technology and have a higher risk appetite. This demographic is attracted to the potential for high returns and the opportunity to support local businesses and entrepreneurs.

Trends in the market: One of the key trends in the South Korean crowdinvesting market is the rise of equity crowdfunding. This allows investors to purchase shares in startups and small businesses, giving them a stake in the company's success. Equity crowdfunding provides a more direct and tangible investment opportunity compared to other forms of crowdinvesting, such as reward-based crowdfunding. Another trend is the increasing popularity of sector-specific crowdinvesting platforms. These platforms focus on specific industries, such as technology, healthcare, or real estate, and connect investors with startups and businesses in those sectors. This specialization allows investors to target their investments in areas they are particularly interested in or have expertise in.

Local special circumstances: South Korea has a vibrant startup ecosystem, with a strong emphasis on technology and innovation. The government has implemented various initiatives to support entrepreneurship and foster the growth of startups, which has created a favorable environment for crowdinvesting. Additionally, the country's high internet penetration rate and tech-savvy population make it an ideal market for online investment platforms.

Underlying macroeconomic factors: The South Korean economy has been experiencing steady growth in recent years, which has contributed to the development of the crowdinvesting market. The government has also implemented policies to encourage investment and entrepreneurship, such as tax incentives for angel investors and the establishment of startup support centers. These factors have created a conducive environment for crowdinvesting to thrive. In conclusion, the Crowdinvesting market in South Korea is growing rapidly due to customer preferences for diversification and support for local businesses, as well as trends such as the rise of equity crowdfunding and sector-specific platforms. The country's favorable startup ecosystem and supportive government policies have also played a significant role in the market's development. With the continued economic growth and technological advancements, the crowdinvesting market in South Korea is expected to continue its upward trajectory.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.