Why Are Korean Women-Led Businesses Lagging in AI? Exploring the Urgent Call for Policy Change

The Stark Numbers: Women-Owned Businesses and the AI Gap

Did you know that women-led businesses now account for over 41% of all companies in Korea? Yet, only 3.2% of these businesses are actively using AI or other Fourth Industrial Revolution technologies. This means Korean women entrepreneurs are adopting AI at just one-thirtieth the rate of male-led companies. The numbers are shocking, especially in a country known for its tech prowess. What’s behind this gap, and why does it matter for Korea’s future?

Policy in the Spotlight: The Chamber’s Urgent Recommendations

On June 7, 2025, the Korean Chamber of Commerce’s Women’s Business Committee gathered in Seoul to address this crisis. Their message was clear: closing the technology gap is not just about fairness, but about national competitiveness. They submitted a formal policy proposal to the National Assembly, urging for targeted support to help women-led businesses scale up through digital transformation and AI adoption. The committee, launched in March, acts as a bridge between female entrepreneurs and policymakers, signaling a new era of advocacy.

Inside the Numbers: Why Is the Gap So Wide?

Let’s break it down: While women are starting businesses at record rates (with an average 5% annual growth over the past eight years), most operate in sectors less exposed to cutting-edge tech. Manufacturing, IT, and biotech—fields where AI is a game-changer—are still male-dominated. Many women entrepreneurs face barriers like limited access to capital, lack of technical training, and fewer networking opportunities. Even when women do enter tech, they often encounter a ‘glass ceiling’ that makes scaling up with AI a challenge.

What the Latest News and Blogs Are Saying

Recent articles highlight a surge in government and private sector initiatives to support women in business. The Ministry of SMEs and Startups has rolled out new plans to empower female entrepreneurs, including funding, mentorship, and global networking opportunities. Major events like the 4th Women Entrepreneurs Week and the Women’s Enterprise Market Capability Reinforcement Project are putting the spotlight on female-led innovation. Naver and Tistory blogs are buzzing with stories of women breaking barriers, from AI-powered health startups to femtech pioneers. But commentators on platforms like Daum and Naver point out that, while the support is growing, the real test will be in closing the skills and funding gap.

Community Voices: What Are Koreans Saying?

On forums like TheQoo, Nate Pann, Instiz, and DC Inside, reactions are mixed. Some users cheer on the new policies, sharing hope that Korea can finally catch up with global trends in gender equality and tech. Others voice skepticism, arguing that government support often gets bogged down in bureaucracy or fails to reach startups outside Seoul. A popular comment on FM Korea reads: ‘It’s about time women’s businesses got real support, not just slogans.’ Meanwhile, PGR21 users debate whether cultural attitudes or practical barriers are the bigger problem, with many agreeing that both need to change.

Cultural Insights: Why This Issue Matters Globally

For international readers, understanding Korea’s unique business culture is key. The country’s rapid economic growth was built on manufacturing and export-driven industries, sectors historically dominated by men. Social expectations around family, work, and gender roles still influence who gets funding and who is seen as a ‘real’ entrepreneur. However, the rise of femtech and women’s business networks is challenging old stereotypes. Korean women entrepreneurs are increasingly visible in global forums, and their success stories are inspiring a new generation.

Femtech and the Future: Women at the Forefront of Innovation

Femtech—technology focused on women’s health and wellness—is emerging as a strategic industry in Korea. The Women Entrepreneurs Association is pushing for femtech to be officially recognized and supported as a national growth engine. Startups led by women are developing AI-powered solutions for everything from reproductive health to smart skincare. These innovations are not just about business—they’re about solving real social challenges, like Korea’s low birth rate and aging population.

What’s Next? The Road to Closing the Gap

The government’s new master plan for 2025-2029 aims to boost women’s participation in tech, expand public procurement from female-led companies, and create more training and mentoring programs. But experts warn that policy alone isn’t enough. Real change will require cultural shifts, more investment in female founders, and a stronger focus on digital skills. As one Naver blogger put it, ‘The future of Korea’s economy depends on whether we can unlock the potential of all our entrepreneurs—not just half.’

How You Can Support: Global Lessons and Takeaways

If you’re an international fan of Korean culture or business, now is the time to pay attention. Supporting women in tech isn’t just a Korean issue—it’s a global movement. Whether you’re a student, investor, or aspiring entrepreneur, look for ways to connect with Korean women-led startups, share their stories, and advocate for inclusive innovation. The next wave of global tech leaders could come from Seoul’s vibrant, diverse, and rapidly changing business scene.