Kwon Chil-seung: "The number of 1 trillion won unicorn companies increased to 13 last year"

[Asia Economy Reporter Oh Ju-yeon] On the afternoon of the 20th, Kwon Chil-seung, Minister of SMEs and Startups, stated during the National Assembly plenary session's government questioning that the number of unicorn companies exceeding 1 trillion won last year sharply increased from 3 in 2017 to 13.

Minister Kwon emphasized in response to a question from Yang Hyang-ja, a member of the Democratic Party of Korea, regarding the Ministry of SMEs and Startups' future policies on discovering semiconductor innovation ventures and startups, "Last year, venture investment amounted to 4.3 trillion won, and the amount of newly formed venture funds was 6.6 trillion won," adding, "The number of unicorn companies also surged to 13."

Minister Kwon evaluated, "They already have 5.6 times more jobs than the four major groups combined," and "At the same time, large-scale venture company M&As in the trillion-won range have recently taken place domestically, signaling a matured venture ecosystem worldwide."

On the same day, Representative Yang stated regarding the localization of materials, parts, and equipment (SoBuJang) that grew after the 2019 Korea-Japan trade dispute, "It is urgent to create a healthy semiconductor ecosystem to fundamentally strengthen the competitiveness of K-semiconductors."

Minister Kwon assessed, "There were difficulties due to sudden export restrictions caused by the Korea-Japan trade dispute, and at that time, the unity of the SoBuJang industry was important." Regarding the Ministry of SMEs and Startups' future policy promotion, he said, "We are currently operating semiconductor-related programs such as SoBuJang Start 100 and SoBuJang Small Giant 100."

Representative Yang also continued questioning Sung Yun-mo, Minister of Trade, Industry and Energy. Yang said, "The semiconductor industry involves astronomical investments and is a timing-sensitive industry where missing the investment period makes recovery impossible," adding, "To strengthen Korea's leadership within the semiconductor industry, more aggressive investment support policies must be implemented."

In response, Minister Sung said, "Although the semiconductor industry has high entry barriers, the chicken game is fierce, so whether the government supports it is crucial," and added, "We are currently consulting with related ministries on the proposals submitted by the semiconductor industry in their government appeal on the 9th." He further stated, "We will prepare alternatives to provide semiconductor companies with substantial tax support."

Regarding the need for infrastructure facility support and deregulation for power, water, and wastewater treatment, he responded, "The government has also formed a team to promote this and will expand communication with the industry."