Venture Companies Achieve 236 Trillion Won in Sales, Ranking Third Among Korean Business Groups

Venture Companies Surpass Major Conglomerates with 820,000 Employees
R&D Investment Ratio Reaches 6.5%, Outpacing Large Corporations

Venture businesses in South Korea have firmly established themselves as a pillar of the national economy, contributing significantly to sales, employment, and research and development. Last year, the total sales of venture companies reached 236 trillion won, maintaining the third-largest position among business groups, while the number of employees surpassed 820,000, exceeding the combined workforce of the four largest conglomerates.

On December 28, the Ministry of SMEs and Startups announced the results of the 2024 "Venture Business Detailed Survey" and the "Social Venture Survey." These surveys analyzed the business performance, employment, research and development, and other aspects of 38,216 certified venture companies and 3,259 social venture companies as of last year.

According to the survey results, the total sales of venture companies last year amounted to 236 trillion won. As in 2023, they maintained the third-largest position in the business sector after Samsung (332 trillion won) and Hyundai Motor (280 trillion won). The average sales per company rose by 140 million won year-on-year to 6.68 billion won, and the average operating profit turned positive at 40 million won. The total number of employees at venture companies reached 828,378, surpassing the 746,000 regular employees at the four major conglomerates-Samsung, Hyundai Motor, LG, and SK.

Infographic of the Ministry of SMEs and Startups' "2024 Venture Business Detailed Survey." Ministry of SMEs and Startups

The industrial competitiveness of venture companies was particularly evident in research and development (R&D) indicators. The ratio of R&D expenses to sales for venture companies stood at 6.5%, more than eight times higher than that of general small and medium-sized enterprises (0.8%). This figure also exceeded that of large corporations (1.9%) and mid-sized companies (1.2%). The average number of intellectual property rights held per company increased by 1.1 to 12.8 compared to the previous year.

The Ministry interpreted these achievements as the result of four years of cumulative structural changes since the private-led reform of the venture certification system in 2021. The system, which comprehensively evaluates the technological capabilities and growth potential of innovative venture companies, has now established itself as a mechanism for selecting companies with "substantial growth."

In particular, the Ministry highlighted the significant increase in the proportion of "venture investment type" companies among venture businesses, which rose from 7.3% in 2020 to 20.1% in 2024. This type refers to companies recognized for their technological capabilities and growth potential in the private investment market, symbolizing the future growth and global competitiveness of venture businesses.

Over the past five years, the average sales of venture companies increased by 26.2%, average employment by 11.9%, and intellectual property holdings by 70.6%. During the same period, the proportion of export-oriented companies among venture businesses rose by 6.2 percentage points, and the R&D-to-sales ratio increased by 2.1 percentage points.

Meanwhile, the number of social venture companies in 2024 reached 3,259, a 21.6% increase from the previous year. By region, the Seoul metropolitan area accounted for the largest share (48.0%), followed by Yeongnam (21.0%) and Honam (13.2%). Social venture companies employ an average of 19.8 people, with 78.5% hiring vulnerable groups such as people with disabilities and the elderly, demonstrating clear achievements in creating social value. The average sales per company increased slightly year-on-year to 3.08 billion won, and the proportion of companies with R&D organizations or personnel expanded to 62.4%.

The Ministry plans to thoroughly analyze the results of this survey and use them as foundational data for designing venture policies for the next 30 years.

Han Seong-sook, Minister of SMEs and Startups, stated, "These survey results provide a quantitative snapshot of the current state of the venture ecosystem," adding, "We will comprehensively analyze the identified achievements and challenges to steadily implement the 'Comprehensive Plan for Becoming a Top Four Global Venture Powerhouse.'"