In 2023, Venture Companies Employed 930,000 People with Total Sales of 242 Trillion Won

Average Sales 2.2 Times and Export Ratio 4.2 Times Higher Compared to General SMEs

The Ministry of SMEs and Startups announced the results of the "Venture Business Detailed Survey" and the "Social Venture Survey" on the 25th, analyzing the management performance, employment, and research and development of 40,081 venture-certified companies and 2,679 social venture companies as of 2023.

As of 2023, the number of venture companies was counted at 40,081, an increase of 4,958 companies (14.1%) compared to the previous year. The concentration in the metropolitan area remained high at 63.4%. By industry, software development accounted for 12.8%, information and communications 10.5%, other services 9.0%, and machinery 7.3%. The average business age was 10.8 years, with 43.0% being early-stage startups with 7 years or less of business experience.

The total number of employees in venture companies in 2023 was approximately 935,000, exceeding the total employment of the four major conglomerates, which was 746,000, by about 189,000 people. Total sales amounted to 242 trillion KRW, ranking third among business groups.

Furthermore, the ratio of research and development (R&D) expenditure to sales in venture companies was 4.6%, which is 2.6 times that of large enterprises, 4.2 times that of mid-sized companies, and 5.8 times that of small and medium enterprises (SMEs), indicating more active technological development activities compared to other company groups. In particular, compared to general SMEs, the average sales were 2.2 times higher, the export ratio 4.2 times higher, and the R&D ratio more than 5.8 times higher. This shows that they are investing heavily in future growth potential through R&D and are actively pursuing growth through global expansion.

The number of social venture companies in 2023 increased by 231 companies (9.4%) from the previous year to 2,679. By region, the metropolitan area had the highest proportion, followed by the Yeongnam region (20.9%) and the Honam region (14.7%). Social venture companies employed an average of 20.8 people during 2023, and 76.2% of social ventures employed vulnerable groups such as persons with disabilities and the elderly, with an average of 10.4 vulnerable employees. The average sales increased by 280 million KRW compared to the previous year to 3.08 billion KRW, and the proportion of organizations and personnel dedicated to R&D was 61.5%.

Kim Bong-deok, Director of Venture Policy at the Ministry of SMEs and Startups, said, “Looking at key indicators such as exports and R&D of venture companies through this survey, their innovation and growth potential have been proven,” adding, “We will continue efforts to advance venture support systems and expand venture investment so that venture companies can become the main drivers of our economic growth.”