Minister Oh Young-joo: "Time to Surpass Global Top 5 in Venture Investment"
Announcement of 'Global Venture Investment Ecosystem Development Plan' Expected
The Ministry of SMEs and Startups discussed directions for creating a global venture investment ecosystem with the venture capital industry.
The Ministry of SMEs and Startups announced that Minister Oh Young-joo held a meeting with the venture capital industry on the 30th at the Gwanghwamun Building in Jongno-gu, Seoul, to discuss the direction of venture investment policies.
Oh Young-joo, Minister of SMEs and Startups, is attending and speaking at the Economic Ministers' Meeting held at the Government Seoul Office in Jongno, Seoul on the 21st. Photo by Jo Yong-jun jun21@
The meeting was organized to discuss preliminary tasks for the domestic venture investment ecosystem to leap to a global level, in collaboration with the venture investment industry and academia, ahead of establishing detailed measures in the venture investment sector as a follow-up to the 'SME Leap Strategy,' a policy blueprint for small and medium enterprises announced last May.
At the meeting, Senior Research Fellow Koo Ja-hyun of the Korea Development Institute (KDI) presented interim results of ongoing research titled ‘The Economic Effects of Venture Investment and the Role of the Korea Fund of Funds in the Venture Investment Market.’
The research confirmed that attracting venture investment leads to growth, such as an annual increase of 13% in sales relative to total assets and a 5% annual increase in operating profit for startups.
The effect of the Korea Fund of Funds in attracting private capital was also significant. Over the past 10 years (2014?2023), the total venture investment scale increased 5.2 times with the increase in the Korea Fund of Funds’ contributions. When limited to the Korea Fund of Funds’ sub-funds, the investment scale relative to the Korea Fund of Funds’ contributions increased from 1.3 times in the past 10 years (2004?2013) to 1.7 times in the recent 10 years (2014?2023).
Minister Oh stated, “The scale of venture investment in Korea ranks fifth globally, following the United States, China, the United Kingdom, and India, and since the institutionalization of the venture investment association system in 1987, liquidated funds have achieved an average annual return of 9%. I believe that Korea’s growth as a venture investment advanced country and the high returns achieved are largely due to the efforts of our startups who did not hesitate to take on challenges and the role of venture investors who believed in and supported them.”
He added, “Now is the time to aim for a higher goal beyond the global top five. We plan to soon announce measures to create a global venture investment ecosystem where our startups can attract sufficient venture investment and secure a competitive edge against global companies.”
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