739 Venture Companies with Sales Exceeding 100 Billion Won Last Year... Record High

[Asia Economy Reporter Donghyun Choi] Last year, the number of venture companies with sales exceeding 100 billion KRW reached a record high of 739.

The Ministry of SMEs and Startups announced the results of the "2021 Venture 100 Billion KRW Companies Survey" on the 21st. The number of venture companies achieving sales of 100 billion KRW or more last year was 739, an increase of 16.7% (106 companies) compared to the previous year (633 companies). This is the highest growth rate in the past 10 years.

Among the 739 venture 100 billion KRW companies, 569 companies consecutively achieved sales of 100 billion KRW following 2020. Sixty-two companies, which had been excluded from the venture 100 billion KRW companies, achieved sales of 100 billion KRW again this time. The remaining 108 companies achieved sales of 100 billion KRW for the first time.

This is the first time the number of new venture 100 billion KRW companies has surpassed 100. Compared to the 62 new venture 100 billion KRW companies surveyed in 2020, this is an increase of 74.1%.

The total sales achieved by venture 100 billion KRW companies last year amounted to 188 trillion KRW, a 22.5% increase from 151 trillion KRW in 2020. If all venture 100 billion KRW companies were considered as a single company, their sales-based ranking in 2021 would be 3rd, up one place from 4th in 2020.

Also, the average sales growth rate in 2021 compared to the previous year was 22.5%, showing higher growth compared to large companies (15.5%) and mid-sized companies (15.8%) during the same period. In particular, the number of "Gazelle-type venture 100 billion KRW companies," which refers to companies with a sales growth rate of over 20% for three consecutive years, increased by 11 to 48 companies last year.

The number of companies with sales exceeding 1 trillion KRW also increased from 17 in 2020 to 21 in 2021, with 4 new companies added. Major companies include Naver, Dunamu, SD Biosensor, Coway, and Kakao.

The number of employees hired by venture 100 billion KRW companies last year was 278,067, a 14.8% (36,037 people) increase compared to 242,030 in the previous year.

By industry, 44,074 people worked in the computer, semiconductor, and electronic components sector, and 34,976 in software development and IT-based services, indicating a high number of employees in industries closely related to ICT technology.

The number of exporting companies among venture 100 billion KRW companies was 580, 96 more than in 2020. Total export value was approximately 39 trillion KRW, with an average export value per company of about 68 billion KRW.

The industrial property rights held by venture 100 billion KRW companies totaled 80,291, accounting for 13.5% of the total 592,615 industrial property rights in Korea. This means an average of 108.6 rights per company, an increase of 4.1 from 104.6 at the end of 2020.

Im Jung-wook, Director of the Startup and Venture Innovation Office at the Ministry of SMEs and Startups, said, "Despite the peak of the COVID-19 pandemic last year, companies in the bio sector and those responding to the pandemic through digital transformation showed good sales," adding, "The very active venture investment over the past five years likely contributed to these good results." He also added, "Although not included in the data, the operating profit margin of venture 100 billion KRW companies last year was 11.8%, higher than that of large companies (7%)," emphasizing that "most venture 100 billion KRW companies have secured considerable profitability."

This venture 100 billion KRW company survey used audit reports from the Financial Supervisory Service's electronic disclosure system and sales data from NICE Information Service. Export and patent data were sourced from the Korea Customs Service and the Korean Intellectual Property Office, respectively, while other data were collected with cooperation from the Korea Venture Capital Association, Korea Employment Information Service, KONEX Association, KOSDAQ Association, and Korea Industrial Technology Association.

Meanwhile, the Ministry of SMEs and Startups held a commemorative ceremony to encourage new venture 100 billion KRW companies of 2021 at the Swiss Grand Hotel Convention Center in Seodaemun-gu, Seoul. Minister Lee Young said, "The significant increase in venture 100 billion KRW companies in 2021 compared to 2020 is the result of the resilience and hard work of venture companies," adding, "In the Korean economy, which is experiencing a complex crisis due to rapid interest rate hikes, high exchange rates, and high inflation, the dynamism and perseverance of venture companies will be a great force to overcome the crisis."