Venture Investment Increased... 8.6 Trillion Won Accumulated in Q3

11.3% Increase Compared to Same Period Last Year... ICT Services Up 47%
Global Venture Investment Down 18.6% but Shows Favorable Trend

Despite the global decline in venture investment, domestic venture investment in South Korea has increased. In particular, there was significant growth in the ICT services and electrical, machinery, and equipment manufacturing sectors.

The Ministry of SMEs and Startups announced on the 14th the trends in domestic venture investment and fund formation for the third quarter of 2024. The figures include the performance of venture investment companies and new technology business finance operators.

The cumulative venture investment amount from the first to the third quarter of 2024 totaled 8.6 trillion KRW, an 11.3% increase compared to the same period last year. It is analyzed that venture investment, which had shown weakness due to a difficult financial environment such as high interest rates, has entered a stable recovery phase.

Looking at the global trends during the same period, the worldwide venture investment amount decreased by 18.6% compared to the previous year. Europe saw an 11.7% decrease, while the United States experienced a 6.4% increase, showing that South Korea's figures were favorable even compared to global venture investment trends.

By industry, 'ICT Services' rose 46.8%, 'Electrical, Machinery, and Equipment' increased by 24.4%, and 'Bio and Medical' grew by 14.7%, leading the overall growth in venture investment. Conversely, 'ICT Manufacturing' and 'Video, Performance, and Music' sectors declined by 7.8% and 52.6%, respectively, during the same period.

The fund formation amount from the first to the third quarter of 2024 totaled 8.2 trillion KRW, a 4.1% decrease compared to the same period last year. However, the fund formation amount has shown an increasing trend for two consecutive quarters, from 2.5 trillion KRW in the first quarter to 3.1 trillion KRW in the third quarter.

Oh Young-joo, Minister of SMEs and Startups, stated, “Despite the challenging global economic situation, South Korea’s venture investment continues to grow steadily. Through the implementation of the 'Advanced Venture Investment Market Leap Plan' announced on October 2, we will further accelerate this growth and create a world-class venture investment ecosystem.”