According to Yonhap News,

(SEOUL=Yonhap News) The Small and Medium Business Administration (SMBA) has announced that venture investment in the first quarter of the year recorded KRW 358.2 billion (USD 334 million), a 29.2 percent increase year-on-year.

A total of 238 venture capitals have received investment in the first quarter, a 16.1 percent increase from the same period last year.

Startups less than three years old, as well as three- to seven-year-old startups, accounted for 52.1 percent (124 companies) and 25.6 percent (61 companies) of the total investment, respectively. Investment in startups in the early- to mid- stages (1 - 7 years) reached KRW 217.6 billion, a 55.4 percent increase year-on-year.

According to the SMBA, the increase is due to the rise in number of newly established corporations and expanded government support for technology entrepreneurs.

By sector, investment in the ICT and services industries grew by 9.0 and 7.7 percentage points, respectively, while investment in cultural contents and bio-engineering fell by 8.6 and 6.4 percentage points, respectively.

Seventeen venture funds were established in the first quarter, which amount to a total of KRW 329 billion.

"It will be possible to exceed the record-high venture investment (KRW 2 trillion in 2000) sooner than expected," said an SMBA official.

ljungberg@yna.co.kr

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