[Op-Ed] Unicorns at Risk of Extinction: An Urgent Need for an Environment Centered on Autonomy and Competition

Unicorn companies—unlisted startup firms valued at over $1 billion and founded within the past 10 years

The number of unicorn companies is increasing worldwide, but in Korea it fell to 9 in 2022, 4 in 2023, and 2 in 2024

Toss, Coupang—grew by resolving inefficiencies in existing markets and providing new value to consumers

We must focus on creating a foundation where firms can take on challenges and grow, discovering startups, and fostering skilled professionals

A unicorn company refers to an unlisted startup firm valued at over $1 billion and founded within the past 10 years. Because such cases are extremely rare, the term is often compared to the imaginary creature, the unicorn. Yet in Korea, unicorn companies—those that overcame numerous hardships and obstacles and astonished the world—are disappearing from view.

While the number of unicorn companies is increasing globally, Korea is facing difficult circumstances, posting the dismal figures of 9 in 2022, 4 in 2023, and 2 in 2024. Around the world, big tech industries based on AI, advanced technologies, and platform services are growing rapidly. Against this backdrop, Korea’s performance can only be seen as a serious crisis.

What went wrong? Experts point to a shortage in the number of skilled professionals. In particular, the lack of young people with the entrepreneurial spirit to seize opportunities and take on innovation is fatal. Korea has fewer young entrepreneurs than market-leading countries such as the United States and China.

At present, Korea’s level of education is high enough to rank third in the number of international students by U.S. standards. But the problem is that this does not lead to nurturing entrepreneurs. Most international students who study AI and advanced engineering return to Korea hoping to find jobs at public corporations and large companies. According to a survey by the Korea Enterprises Federation, 6 out of 10 students in their 20s ranked entrepreneurship last in terms of career choice.

An environment unsuited to cultivating entrepreneurs and industrial regulations are also holding Korea back. Korea’s market structure is caught in an ambiguous position: it is neither a fully free-market system like that of the United States nor one subject to the powerful state control seen in China. On top of that, excessive regulations and conflicts with entrenched interest groups are acting as obstacles to fostering entrepreneurship. In short, an environment that makes it difficult to cultivate entrepreneurs, along with industrial regulation, has pushed Korea further away from producing unicorn companies.

How can Korea overcome this crisis? First, it is urgent to create a social environment that inspires a spirit of challenge among young people. What is needed is a fundamental paradigm shift that goes beyond simple educational support. A culture that tolerates failure and learns from it must take root. When a social consensus is formed that sees failure not as “failure” but as “part of the process of growth,” young people will boldly step into the unknown territory of entrepreneurship.

Furthermore, we must remember that successful unicorn companies naturally emerge in an environment of free competition in the market. In the past, unicorn companies such as Toss and Coupang grew by resolving inefficiencies in existing markets and providing new value to consumers. These firms did not seek monopolistic status; rather, they rose to the ranks of unicorns by accurately identifying market needs and continuously innovating. In other words, instead of a regulation-centered approach, Korea must create a market environment centered on autonomy and competition, thereby laying the foundation for promising firms to challenge themselves and grow to their fullest potential.

The decline in Korea’s unicorn companies should not be seen merely as a drop in an economic indicator, but as a warning sign of weakening future growth engines. The government and society must focus on discovering innovative startups and cultivating creative skilled professionals.

Above all, it is crucial to build an environment in which young people can take on challenges courageously and grow through failure. When young entrepreneurs armed with entrepreneurial spirit soar as the new unicorns of our economy, Korea will finally be able to achieve sustainable growth and innovation.

Hong Seungpyo, Intern Researcher, Center for Free Enterprise (CFE)

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Original title: [칼럼] 유니콘 기업 멸종 위기, 규제 대신 자율과 경쟁 중심의 환경 절실

Author: Seung-pyo Hong

Date: 2026-01-20

Source: https://www.cfe.org/bbs/bbsDetail.php?cid=free_opinion&idx=28523