Date
2015.02.10
According to Yonhap News,
(SEOUL=Yonhap News) The Small and Medium Business Administration (SMBA) announced January 22 that the number of venture capitals reached 30,021, exceeding the 30,000 level for the first time.
Venture capitals, which first appeared in Korea in the late 1980s, grew in quality and quantity in the early 2000s thanks to the government’s development policies for them.
There were 2,042 venture capitals in Korea in 1998 and the number increased to 12,218 in 2006 and 24,645 in 2010. It exceeded the 30,000 level last March.
The growth of venture capitals led to a bigger share of Korea’s economy. The venture capitals, which recorded total sales of KRW 198.7 trillion (USD 182.5 billion) as of 2013, account for 13.9 percent of Korea’s gross domestic product (KRW 1428.3 trillion). The average sales of venture capitals are KRW 6.84 billion, 2.4 times more than that of small- and medium-sized companies (KRW 2.84 billion).
There are 642 venture capitals that grew from small-sized companies to mid-sized ones as of 2013, accounting for 16.7 percent of the total mid-sized companies.
The SMBA expects that there will be 35,000 venture capitals in 2017 and that sales will reach KRW 230 trillion.
The administration also evaluated that the government’s policies for venture capitals have been effective for their expansion.
In order to continue the venture capital boom, the SMBA will prepare measures to establish a virtuous ecosystem for venture capitals and startups. It also plans to promote investment and expand the infrastructure for venture capitals. It aims to nurture 5,000 technology startups, create an annual KRW 2 trillion in venture funds and expand venture funds for startups in the early stage.
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Source: Yonhap News (January. 22, 2015)
** This article was translated from the Korean.