90% of Venture Companies Say "Economy Is Bad"... Next Administration Urged to Expand R&D Investment

Survey of 570 Venture Companies
Difficulties in Overseas Markets, Securing Funds and Talent
Urgent Need for Technology R&D and Talent Support

Amid a negative assessment of the current economic situation by nine out of ten domestic venture companies, there are growing calls for the next administration to prioritize "job creation through supporting corporate growth" as its top task to revitalize the economy. By sector, support for research and development (R&D) and securing outstanding talent was found to be the most urgent need.

On May 12, the Korea Venture Business Association announced the results of a survey titled "Venture Business Policy Expectations for the Next Administration." This survey was conducted to identify policy directions and support measures that should be prioritized for the development of the domestic venture business ecosystem ahead of the launch of the new government. A total of 570 venture companies participated between April 18 and April 22.

According to the survey, 90.5% of venture companies rated the current economic situation in South Korea as "bad," and 53.7% also gave a negative assessment of their overall business management conditions.

The responding companies indicated that they are facing significant difficulties across various aspects of business operations. In particular, 78.4% identified "overseas market development" as the most challenging area, followed by "fundraising, financial management, and securing liquidity" (73.5%), and "securing and retaining necessary personnel" (67.7%).

When asked about the top priority the next administration should pursue to revitalize the South Korean economy, 46.9% of venture companies selected "job creation through supporting corporate growth." This was followed by "expanding and supporting future new technologies and growth engines" (44.2%), and "stimulating consumption through boosting domestic demand" (31.6%).

The survey also found that companies believe all policy and support systems presented in the questionnaire should be urgently addressed by the next administration. The highest response rate was for "expanding R&D investment to secure technological competitiveness" at 88.8%, followed by "strengthening support for securing and retaining outstanding talent" (85.6%), and "expanding financial support such as guarantees and loans" (84.7%).

Regarding the next administration's venture business support policies, 66.8% of all responding companies said they "have expectations," while only 8.4% said they "do not have expectations."

Lee Jeongmin, Secretary General of the Korea Venture Business Association, stated, "Venture companies are going through a more difficult period than ever," and added, "As many venture companies have positive expectations for the next administration's support policies, the association will continue to communicate and cooperate so that these voices from the field are faithfully reflected in future policies."