62.5% of Venture Companies "Suffered Direct or Indirect Damage from COVID-19"

Source: Korea Venture Business Association

[Asia Economy Reporter Kim Daeseop] It has been revealed that 6 out of 10 venture companies have suffered direct or indirect damage due to the impact of the novel coronavirus infection (COVID-19).

According to the Venture Business Association on the 26th, a survey on the on-site impact of COVID-19 was conducted this month targeting 628 companies, and 62.5% responded that they had "suffered damage." Among them, 36.4% reported "direct damage" and 26.1% reported "indirect damage."

Among the companies that responded they had damage, 62.7% were related to overseas exports, imports, and expansion. China was the highest export country at 28.9%, followed by "Southeast Asia" (19.4%), "the United States" (15.9%), and "Japan" (12.2%). The severity of export damage scored an average of 6.7 out of 10, and import damage scored an average of 7.8.

If the spread of COVID-19 continues, the expected average damage amount for venture companies was about 680 million KRW. There were also companies that responded with a maximum damage amount of 10 billion KRW.

Regarding companies' damages and difficulties, "difficulty in securing parts and materials" was the highest at 31.4%. This was followed by "event (exhibition/fair) cancellations" (9.9%), "contract cancellations" (5.1%), "export difficulties" (3.0%), "personnel operation difficulties" (2.5%), and "business activity difficulties" (2.3%).

As for companies' own countermeasures, "all employees wearing masks" (23.5%), "discovering new business partners" (16.4%), and "reduced working hours and telecommuting" (7.1%) were reported. The response "no countermeasures" also accounted for 8.0%. The countermeasures requested from the government included "management fund support" (54.8%), "restraint on excessive media coverage" (14.1%), and "alleviation of anxiety" (11.2%).

A representative from the Venture Business Association said, "We plan to submit the difficulties and requests collected through this survey to related ministries, including the Ministry of SMEs and Startups, so that the government can understand the severity of the damage and difficulties faced by venture companies and work together to prepare effective COVID-19 countermeasures."

This content was produced with the assistance of AI translation services.