[Square] Endless Startup Enthusiasm Recreates Quality Jobs

Jae-Seung Park, CEO of VisualCamp and Adjunct Professor at Soongsil University

Due to the prolonged COVID-19 pandemic and the resulting economic downturn, the employment market in our country is currently facing its worst situation. The largest number of jobs have disappeared since the foreign exchange crisis. Even amid this massive loss of jobs, there is one sector that has played a major supporting role in the employment market: startups. Despite the COVID crisis, venture companies and startups reportedly increased jobs by 54,000 last year. This is a higher level than the hiring scale of large corporations.

Furthermore, according to the detailed survey results of venture companies announced at the end of last year, total employment in venture companies stands at 804,000, which is 135,000 more than the employment of Korea's four major conglomerates. This statistic clearly demonstrates that startups and ventures are a solid pillar of our economy, contributing to economic recovery.

In fact, VisualCamp, which I co-founded with a partner in 2014, is now a 7-year-old startup with 20 employees, a tenfold increase. Next year, the number of employees is expected to double again to 40. If 100 such startups are created, a virtuous cycle will be formed, providing 2,000 to 4,000 jobs through simple calculation.

Last year, due to the impact of COVID-19, the job market froze solid, and the large corporation open recruitment market disappeared. There is no sign that this supply imbalance will be resolved in the short term. Moreover, changes in hiring culture are inevitable. Ultimately, the alternative is to improve employment rates through entrepreneurship and stabilize supply. As small startups survive and grow, the overall number of jobs will increase significantly, naturally resolving the employment difficulties that are the government's biggest concern and a social problem. This is the only solution to increase employment rates.

Entrepreneurship is not about jobs funded by taxes. It is about creating new jobs that pay taxes. In this regard, it serves as an alternative that simultaneously alleviates severe employment difficulties and supplies sustainable momentum to an economy trapped in low growth. This is why the whole world is seeking solutions to low growth through startup creation. Reviving entrepreneurial spirit and expanding investment and employment will revive jobs and turn the engine of the national economy.

What is even more encouraging is that the government's support scale for startup creation is at an all-time high. The Ministry of SMEs and Startups, the dedicated department for fostering startups, provided a budget exceeding 1.233 trillion won for 40 startup support projects last year, and this year it is expected to surpass 2 trillion won. Additionally, support projects that were mainly centered on the Ministry of SMEs and Startups have expanded to various fields including the Ministry of Science and ICT, Ministry of Trade, Industry and Energy, Ministry of Environment, Ministry of Culture, Sports and Tourism, as well as local governments, enabling startups from more diverse industries to receive support and benefits, which is also encouraging.

As the presidential election phase nears its end, the movements and actions of leading presidential candidates are also focusing on capturing the youth vote and supporting startups. Ultimately, this should be placed at the top of the agenda for the next government to prioritize, deliberate on, and formulate policies.

The Fourth Industrial Revolution era is one in which capable startups create numerous jobs and revitalize the economy through innovation. Shouldn't we now take a more proactive approach to activating startup and venture entrepreneurship, which will be the breakthrough for our economy, help recover from the COVID crisis, and lead the post-COVID era? When the COVID era ends and the world changes, that new future will be given to those who are prepared.