"Innovation Ventures as the Backbone of the Economy" Startup Enthusiasm Grows Hotter

Emergence of Alternative Growth Companies Amid Non-Face-to-Face and Digital Economy Transition
10:1 Competition Rate for 8th Kibo Venture Camp Recruitment... Up from Last Year

[Asia Economy Reporter Kim Cheol-hyun] This year, the enthusiasm and interest in venture and startup entrepreneurship are heating up. Accelerating programs that discover and nurture entrepreneurs are attracting more applicants than last year. The ongoing COVID-19 pandemic, which has lasted for a year, has not been able to dampen the entrepreneurial fervor. Despite the overall economic contraction caused by COVID-19, the rise of contactless (untact) industries and the shift to a digital economy have combined to elevate venture and startup companies as alternative growth enterprises to overcome the crisis.

According to the Korea Technology Finance Corporation (Kibo) on the 26th, 530 companies applied for the recently recruited 8th 'Kibo Venture Camp' this year to foster innovative startup companies. About 50 companies will be selected, making the competition rate over 10 to 1. Considering that the competition rate for the Kibo Venture Camp held around this time last year was about 8 to 1, Kibo explained that both the number of applicants and the competition rate have increased this year.

The Kibo Venture Camp is Kibo's accelerating program created to discover and nurture innovative entrepreneurs. Since its introduction in the second half of 2017, it has discovered 290 companies as of the end of September last year, establishing itself as a representative platform for discovering innovative startup companies. Companies selected to participate in the Kibo Venture Camp receive various programs such as consulting for establishing customized growth strategies, mentoring linked with experts in various fields including successful entrepreneurs, opportunities to attract investment, and networking with venture capitalists. In particular, Kibo provides a package of financial services such as guarantees and investments, as well as non-financial services including venture certification, research and development (R&D) support, and technology transfer to graduated companies, systematically supporting startups until they achieve successful entrepreneurship. In fact, among the 290 discovered companies, Kibo has supported guarantees worth 37 billion KRW for 191 companies and directly invested 2.4 billion KRW in 12 companies. Additionally, it has certified 141 companies as venture companies, providing comprehensive support through a two-track system of financial and non-financial services.

The high entrepreneurial enthusiasm even amid the COVID-19 situation is related to the fact that the challenges of ventures and startups are producing visible results one after another, playing a supporting role for our economy during difficult times. According to the detailed survey results on venture companies announced at the end of last year, total employment in venture companies was about 804,000, which is 136,000 more than the 668,000 employed by Korea's four major conglomerates. Based on the 2019 year-end settlement, the total sales of venture-certified companies amounted to approximately 193.3 trillion KRW, ranking second after Samsung among large corporations. Furthermore, the number of venture companies among the top 20 KOSDAQ market capitalization companies increased from 6 in 2001 to 13 last year, and the combined market capitalization of these companies was about 44.8 trillion KRW, accounting for 11.5% of the total KOSDAQ listed companies' market capitalization and 51.4% of the top 20 companies' market capitalization, contributing to economic recovery.

Even in the process of overcoming the crisis caused by COVID-19, ventures and startups are evaluated as demonstrating the capability and potential to lead new economic models in the post-COVID era through untact technologies. A venture industry official said, "At the center of changes such as the rise of untact industries and the transition to a digital economy, venture companies are introducing innovative technologies faster than anyone else and challenging new possibilities," adding, "As innovative ventures emerge as an alternative to overcome the COVID-19 crisis, interest and enthusiasm for entrepreneurship are also heating up."

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