The number of newly established businesses in South Korea reached 25,447 in the first quarter this year with 59.6 percent or 15,174 set up in the Seoul metropolitan area.

According to data compiled by Maeil Business Newspaper on Sunday, the number of corporations founded between January and March this year amounted to 25,447, the highest quarterly figure over the last three years. Among them, 31.2 percent or 7,944 was set up in Seoul, followed by Gyeonggi Province with 24.4 percent or 6,197 entities, the southern port city Busan with 5.2 percent or 1,319 and the western port city Incheon with 4.1 percent or 1,033 entities.

One of the Seoul’s busiest districts Gangnam hosted the most number of new businesses reaching 1,857 during the citied period, trailed by 839 in Yeongdeungpo district and 791 in Seocho district. In Gyeonggi Province, Hwaseong city ranked fourth with 558 newly established corporations, Bundang district in Seongnam ranked 10th with 370 and Bucheon city ranked 11th with 347.

As more business owners chose Gyeonggi Province over Seoul to avoid expensive labor costs and rent, the number of new enterprises in Seoul fell by 701 while Gyeonggi Province saw the number increase by 569.

Of the 23,503 limited liability companies, 74.6 percent was small-sized firms with equity capital of less than 50 million won ($43,994), and 41.5 percent was established with less than 10 million won in equity capital. The number of new small businesses increased in the first quarter this year compared to 8,726 entities or 39.3 percent in the same period of last year.

By Lee Hyun-jung

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]