Red Tape Driving Start-ups out of Korea

One in four start-ups in Korea is considering relocating overseas due to red tape here, a poll suggests. 

The Korea International Trade Association said Sunday that a poll of 256 start-up companies showed that 25.4 percent or 65 are considering moving overseas.

Seventeen of them ticked they were “seriously considering” it.

Some 113 or 44.1 percent of the start-ups said they have a tough time developing and using new technologies due to excessive regulations, while only 57 or 22.3 percent said they are not experiencing any difficulties. 

Red tape was cited as the biggest obstacle to technology development and operations by close to 70 percent or 179.

Asked what other obstacles they experience, 65.6 percent ticked funding, followed by rising expenses (61 percent), decreased investments from external sources (55.5 percent) and difficulty hiring professionals (44.9 percent). Multiple answers were allowed. 

Two-thirds of the start-ups surveyed employ fewer than 10 staff.