[2022 National Audit] "Venture Companies Decreased by 2,300 in One Year... Intensified Concentration in Sudogwon"

6 out of 10 Venture Companies Located in Seoul and Gyeonggi
Government Support Drastically Reduced, Accelerating Management Difficulties Expected

[Asia Economy Reporter Kim Cheol-hyun] It has been pointed out that the number of domestic venture companies has significantly decreased and the concentration in the metropolitan area has intensified. On the 24th, Lee Seong-man, a member of the Democratic Party of Korea, revealed this through the 'Venture Company Status' data received from the Ministry of SMEs and Startups.

According to the data, as of September this year, the total number of domestic venture companies was 35,950, a decrease of 2,369 (6.1%) compared to 38,319 last year. By region, the distribution is ▲Gyeonggi 11,115 (30.9%) ▲Seoul 10,314 (26%) ▲Busan 1,783 (5%) ▲Incheon 1,629 (4.5%) ▲Daejeon 1,427 (4%). On the other hand, Sejong, Jeju, and Ulsan regions had only 174 (0.5%), 215 (0.6%), and 421 (1.2%) respectively.

The concentration in the metropolitan area has worsened. Currently, 21,429 (59.6%) venture companies are concentrated only in the Gyeonggi and Seoul areas, which is an increase compared to 55.4% in 2020 and 57.7% in 2021.

[2022 National Audit] "Venture Companies Decreased by 2,300 in One Year... Intensified Concentration in Sudogwon"

Assemblyman Lee Seong-man

The significant decrease in the number of venture companies is attributed to the prolonged COVID-19 pandemic and continuous economic recession. Additionally, Lee stated that the reduction in support for SMEs and startups, such as the drastic cut in the Youth Tomorrow Filling Deduction budget, is expected to make management difficulties even harder.

Lee said, "It is no exaggeration to say that venture companies are on the brink of bankruptcy one after another due to economic downturn and reduced government support," and added, "Priority should be given to support projects for non-metropolitan venture companies, and local governments must urgently prepare solutions such as establishing mid- to long-term business strategies to revitalize venture companies."