Venture Industry: "Stagnant Growth in Ventures... Expecting Effective Policies from New Administration"

Korea Venture Business Association: "Venture Vitality Disappearing in the Era of Low Growth"
"Support Needed for Venture Companies to Serve as South Korea's Starting Pitchers"

The venture industry has called on President Lee Jaemyung to implement the venture and startup pledges he presented during the election campaign as policies that can be tangibly experienced at the business site.

On June 4, the Korea Venture Business Association issued a statement saying, "We sincerely congratulate candidate Lee on his victory," and added, "The outcome of this election reflects the people's desire for economic revitalization and national unity. With high expectations for the new administration, the venture industry also holds great hope."

The association stated, "Currently, South Korea has entered an era of low growth, with warnings of growth rates in the 0% range. The number of startups, which are the seeds of ventures, has declined for three consecutive years, the venture investment market has contracted, and for the first time ever, the operating profit of venture companies has turned negative. As a result, the spirit of challenge and growth that once symbolized the venture industry is disappearing."

The association further noted, "Regarding these issues, 90.5% of venture companies perceive the current economic situation as extremely serious. We hope the President will play a central role in overcoming this crisis by preparing immediate measures and ensuring swift and effective responses without delay."

The association also stated, "We earnestly hope that policy tasks such as expanding private venture capital investment by mandating venture investment from 68 statutory funds, introducing a regulatory innovation standard nation goal system, and improving labor systems including exemptions from the 52-hour workweek for core research personnel at venture companies, will be reflected in the new administration's national agenda. This would help create an environment where venture companies can serve as the starting pitchers for South Korea's economic growth."

The association concluded by saying, "The venture industry will also actively cooperate through innovation and growth so that South Korea can establish itself as a more competitive nation in the global economy."