This study critically investigates the strategic transformation of South Korea’s entrepreneurial ecosystem within the broader trajectory of national economic modernization and innovation-centric development. The principal objective is to understand how coordinated governmental strategies, targeted institutional reforms, and private sector alignment have collectively redefined entrepreneurship as a structural pillar of economic advancement. Drawing upon a synthesis of longitudinal economic data, comparative policy frameworks, and a refined production function incorporating entrepreneurship as a distinct variable, the research adopts a multidisciplinary lens. It evaluates key dynamics such as venture investment flows, research and development spending, and startup proliferation between 2005 and 2024. Through the construction of a comprehensive entrepreneurship performance index and the estimation of an entrepreneurship-augmented growth model, the analysis captures both the macroeconomic contribution and the policy effectiveness behind Korea’s startup landscape. The findings underscore that entrepreneurship in Korea functions not as a peripheral activity but as an embedded mechanism for addressing core economic vulnerabilities, including demographic contraction, employment mismatches, and structural dependence on large conglomerates. The paper concludes that Korea’s model, characterized by institutional agility and strategic foresight, offers instructive insights for nations navigating post-industrial transitions. Its broader significance lies in demonstrating how entrepreneurship, when interwoven into national policy, education systems, and regional development, can serve as a lever for sustainable competitiveness. Rather than offering a universal blueprint, the Korean experience presents a flexible framework adaptable to diverse socio-economic contexts, especially in emerging and resource-transitioning economies.
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