Factory's Post 🇪🇺 #7

Factory's Post is back to deliver the insights you need for your business growth.💡 We've gathered the latest business trends, useful information for market entry, and hot news from the Korea-Europe ecosystem!

Ageing may be inevitable, but for Korea's Gen Z, slowing it down is a lifestyle as well as a booming investment trend. This trend is called "Slow-ageing" - it's no longer "Anti-ageing", since "Slow" sounds more reasonable than "Anti" 😛. What started as a health movement has now transformed into a massive investment opportunity, with crowdfunding platforms witnessing unprecedented growth in wellness-focused startups.

❓ How did this trend start?

Originally introduced by U.S. scientists, slow ageing emphasises dietary habits and lifestyle over genetic destiny. In Korea, Dr. Jung Hee-won from Seoul Asan Medical Centre's Department of Geriatrics sparked the movement by sharing that "30% of ageing factors are determined by genetics, whilst 70% come from lifestyle habits". The concept has resonated deeply with younger consumers facing rising chronic disease rates—diabetes cases amongst people in their 20s and 30s have jumped over 70% in the past decade, with hypertension cases rising by 45%. This has created fertile ground for health-focused startups, functional food brands, and wellness product makers to capture a loyal, high-spending customer base.

🐌 Korea's Gen Z Turns Slow-Ageing Into a Billion-Won Investment Goldmine

Crowdfunding platform Wadiz announced that inner beauty-related funding increased by 2.7 times in the first half of this year compared to the same period last year. The number of related projects also grew by 43%, signalling a fundamental shift in consumer priorities. Key funding categories include blood sugar management, anti-ageing solutions, and sleep optimisation - with successful projects averaging over 200 million won in funding each.

🏢 Corporate Giants Rush to Capture the Trend

Major corporations are rapidly pivoting to capitalise on this trillion-won opportunity. Food conglomerates launched specialised care food brands with healthy ageing menus, whilst bakery chains introduced premium health bread lines. Convenience store chain GS25 reported that mixed grain sales jumped from 15.4% in 2022 to 60.7% in January 2025, prompting dedicated product line expansions. Health supplement companies achieved 400 million won in sales within five days for blood sugar care products, representing 12x faster growth than their flagship ginseng products.

The slow-ageing revolution represents more than a health trend - it's a fundamental market transformation where wellness meets profitability. As 67.8% of Koreans express willingness to invest time and money in anti-ageing solutions, smart investors and entrepreneurs are positioning themselves at the forefront of this multi-billion-won market opportunity.

Investment

🚀 Two New Korean Unicorns Emerge in H1 2025: FuriosaAI & BeNow

South Korea’s venture capital scene is showing renewed momentum, with total new investments reaching ₩5.68 trillion, up 3.5% from last year. Average funding per company jumped nearly 30%, reflecting a focus on high-potential scale-ups. Two standout startups crossed the ₩1 trillion valuation mark: a semiconductor innovator FuriosaAI, and the K-beauty powerhouse BeNow.

FuriosaAI, also known for rejecting Meta’s deal, secured $125 million in Series C funding, with participation from over 40 investors, including private equity funds, which is rare in early-stage deals. Its Renegade AI inference chip boasts 2.25x better performance per watt than conventional GPUs. The company plans to expand production, develop next-gen chips, and push for global commercialisation, a key move for Korea’s AI self-reliance strategy.

BeNow, founded in 2018, has seen meteoric growth: 2024 sales nearly doubled to ₩114.5 billion, with over 20% operating margins. Riding the global K-beauty wave, it exports to 12 countries and is preparing for a 2026 IPO expected to value the firm at over ₩1 trillion.

🎵 Global Investors Bet Big on Korea’s Fan-Driven Entertainment Startups

Do you remember our last issue on how K-Culture is creating extraordinary value? That trend is now backed by significant global investment, with funds pouring into innovative entertainment companies. Modhaus, the creator of the blockchain-based fan-participation platform “Cosmo,” has secured KRW 21 billion ($15 million) in Series B funding led by IMM Investment, alongside prominent global VCs.

S2 Entertainment, behind rising group Kiss of Life, secured KRW 5.2 billion in Series A funding. With the recognition as “the miracle of mid-sized agencies”, investors value their execution, marketing, and global growth.

These investments prove K-Culture is a viable business model with global reach. With innovative fan engagement and international ambitions, even smaller agencies now compete worldwide. The evidence is clear: K-Culture's value is measurable. What do you think is the next frontier for K-pop's global growth?

Policy

🤖 Korea’s Next Unicorn Fund Sparks Debate Over Support for “Overseas-Based Korean Startups”

Korea's new AI and deep tech fund sparks debate by allowing investments in overseas-incorporated startups with Korean founders. The policy now supports foreign companies where Koreans hold at least 30% ownership. Critics worry this diverts scarce resources from local innovators.

Opponents argue that sharing limited funds with overseas firms weakens domestic tech development and risks talent drain. They point to previous technology outflow concerns from the FuriosaAI–Meta talks as evidence for keeping strategic tech development local.

Proponents maintain that in today's borderless AI landscape, founder nationality outweighs company location, noting many foreign-registered Korean startups maintain R&D centres in Korea. The Ministry of SMEs believes exclusion would harm Korea's competitive position. The challenge remains finding a balance between national security and global competitiveness - where do you think the line should be drawn?

Market

🚚 Logistics - The Hidden Engine Behind Korea’s $3.94B Export Boom

K-beauty’s global fame is well-known—but its rapid rise rests on a powerful logistics backbone. In the first half of 2024, cosmetics topped Korea’s SME exports at $3.94 billion, up 19.7% year-on-year, with demand expanding from the U.S. and Southeast Asia to emerging markets like Poland and the UAE. Behind this surge are digital-savvy logistics startups that use AI and global platforms to push K-beauty deeper into the world market.

One standout is TechTaka, whose AI-driven logistics platform “ARGO” predicts demand, optimises shipping routes, and offers tailored services from custom packaging to real-time inventory tracking. Recognised as an Amazon Service Provider Network partner, TechTaka now connects Korean warehouses directly to U.S. Amazon fulfilment centres, while guiding SMEs through FDA approvals, customs clearance, and labelling regulations.

In short, K-beauty’s dominance isn’t just about great products—it’s powered by smart, scalable logistics that lower global entry barriers for Korean brands. As TechTaka eyes Europe and Southeast Asia next, the “digital merchants” of Korea could make the next chapter of K-beauty even bigger.

Meet New Startups!

We'd like to take a moment to introduce you to some of the startups that will be joining us in the coming days. Today, we introduce you to Weflo, an AI-based inspection equipment for EV motor assembly and manufacturing startup.

🚗 AI vision for Perfect EV Motors

Weflo is revolutionising EV motor manufacturing with its AI-based inspection solution, VAIS (Vision AI Solution). Designed for high-speed, high-precision production lines, VAIS detects even microscopic defects in motor components, ensuring consistent quality without slowing down output. Its deep-learning algorithms continuously improve accuracy, making it a powerful tool for manufacturers aiming to reduce waste and increase reliability.

Beyond defect detection, Weflo’s platform integrates seamlessly into existing assembly lines, providing real-time data analytics to optimise production processes. This not only cuts operational costs but also helps manufacturers meet the rigorous safety and efficiency standards of the global EV market. With EV adoption accelerating worldwide, Weflo is positioning itself as a key enabler of smarter, greener mobility.

123 Factory, Now

🥂 5 September, Asia Berlin X KISED Night

🗓️ Date: September 5th, Friday, 17:00
📍 Location: KIC Europe, Friedrichstraße 200, 10117 Berlin 
👉 Spots are limited, register now!

123 Factory is thrilled to co-host this high-energy satellite event during IFA Week, connecting the startup ecosystems of Korea and Berlin. Together with AsiaBerlin—and with the support of KISED, KIC Europe, MSS, and the K-Startup Center—we’re bringing founders, investors, and ecosystem leaders together for rapid-fire pitches, cross-border collaboration, and global networking.

The evening will feature 3-minute startup spotlights from both Korean and Berlin innovators, followed by open networking over dinner in a relaxed setting. It’s a unique opportunity to exchange ideas and spark partnerships.

⚖️ EU Law/Regulation Online Seminar

On July 29, 123 Factory, in collaboration with Attorney Seunghyun Min from DLG, successfully hosted an online seminar on EU regulations. The event drew strong interest from Korean startups and companies considering expansion into Europe.

The seminar covered key EU regulations such as the Digital Services Act (DSA), Digital Markets Act (DMA), and Carbon Border Adjustment Mechanism (CBAM), along with compliance strategies and preparation guidelines. Using real-world examples from the automotive and electronics industries, the session provided guidance on regulatory readiness and document preparation strategies.

123 Factory will continue to offer practical programs to support European companies entering Korea. For presentation materials from this seminar or information on future events, please contact us! ☎️

Upcoming Events

• CPhI Korea 
  26-28 August | Seoul, Korea | Pharmaceutical, BioTech 
  As part of the CPhI Worldwide, this event serves as a comprehensive exhibition for the global pharmaceutical, biotechnology, and health functional industry.

• World Climate Industry Expo 2025 
  27-29 August | Busan, Korea | Energy, ClimTech 
  International forum for addressing the climate crisis and achieving net-zero goals.

• Global Healthcare Week 2025 
  4-6 September | Busan, Korea | Healthcare 
  Global Healthcare Week is a specialised healthcare exhibition committed to advancing the ‘Bio Health’ industry, including healthcare, medical industry, and medical tourism

• Asia Berlin X KISED Night: Fast Talks & New Faces 🎉
  5 September | Berlin
  This event offers a unique platform to showcase rising founders, exchange ideas, and foster meaningful partnerships across borders—with a particular spotlight on Korean startups entering the European market.

• HEY 2025 
  17-19 September | Changwon, Korea | Renewable Energy 
  The 2025 International Hydrogen and Electric Energy Exhibition aims to be Korea's leading energy-specialised exhibition, serving as a platform for domestic and international companies in the hydrogen, electric, and carbon-neutral sectors

• SURF 2025 Incheon 
  23-24 September | Incheon, Korea | Startups 
  The city’s premier startup event will showcase cutting-edge AI and robotics innovations, fostering collaboration and sharing industry insights

• Korea Life Science Week 2025 
  30 September - 1 October | Seoul, Korea | Bio, Medical, Pharma 
  Global Hub for innovation in life sciences & regenerative medicine

Thank you for reading Factory’s Post!
We’re always open to exciting news, promotions, and proposals to share with the 123 community. Feel free to contact [email protected], we’d love to hear from you! 😀