New business registrations hit record low in first half of 2026

The number of new businesses launched in the first half of this year fell to its lowest level since related statistics began being compiled in 2016, marking a sixth consecutive year of decline. Technology-based startups, however, bucked the overall trend, posting double-digit growth led by the information and communications sector.

The Ministry of SMEs and Startups released its "First-Half 2026 Startup Trends" report Thursday, showing 565,640 new businesses were registered in the first half of this year, down 1.5 percent, or 8,880 companies, from the same period last year.

The figure is the lowest for any first half since the ministry began tracking the data in 2016. New business registrations peaked at 809,599 in the first half of 2020 and have fallen every year since — 730,260 in 2021, 695,891 in 2022, 650,504 in 2023, 622,760 in 2024, 574,520 last year and 565,640 this year.

By sector, wholesale and retail trade — which accounts for 32.8 percent of all new businesses — recorded the steepest decline. Startups in that sector totaled 185,409 in the first half, down 10.7 percent, or 22,186 companies, from a year earlier. Transportation and warehousing fell 5.8 percent, and personal services dropped 3.8 percent.

Manufacturing startups also declined, falling 2.8 percent from last year to 15,868 companies, with the automotive and transport equipment segment down 8.2 percent and wood and furniture down 13.7 percent. Total service-sector startups slipped 1.8 percent to 501,260.

Technology-based startups stood out against the broader decline. A total of 123,418 technology-based businesses were launched in the first half, up 14.2 percent, or 15,333 companies, from the same period a year earlier. Their share of all new businesses rose 3.0 percentage points to 21.8 percent from 18.8 percent last year.

Startup activity fell across all age brackets except those 60 and older. New businesses founded by entrepreneurs under 30 dropped 3.9 percent year-on-year, while those in their 30s fell 2.3 percent, those in their 40s fell 3.2 percent and those in their 50s fell 0.8 percent. By contrast, startups by those aged 60 and older rose 2.4 percent to 92,369.

Youth startups — those founded by entrepreneurs aged 39 or younger — fell 2.8 percent to 201,228, driven largely by drops in wholesale and retail trade (down 16.4 percent) and transportation and warehousing (down 11.2 percent). Even among younger entrepreneurs, however, technology-based startups increased, rising 18.2 percent among those under 30 and 22.2 percent among those in their 30s.