"Job Creation Champions"... Venture Companies Surpass the Four Major Conglomerates

Over 2,000 More as of Last Year-End
Three Times the Overall Employment Growth Rate in One Year
4 Out of Every 10 New Jobs Are Youth Employment

# Ontact platform company Gurumi, which operates cloud services such as video conferencing and online lectures, has more than tripled its number of employees in one year. Starting with 12 employees, the company significantly increased its workforce last year as demand for video conferencing surged due to COVID-19. Along with the Camp Study service (a service that broadcasts and shares study sessions), the number of clients using the video conferencing platform rapidly grew, leading the company to focus on securing development and service operation personnel.

Venture companies are emerging as key players in job creation amid the COVID-19 pandemic. According to the Ministry of SMEs and Startups announcement on the 19th, as of the end of June, the total employment of about 35,500 venture companies that agreed to provide employment information increased by approximately 67,200 people (10.2%) compared to a year earlier, reaching about 727,500 employees. Compared to the 3.4% increase in the total number of domestic employment insurance subscribers during the same period, the employment growth rate of venture companies was three times higher. Employment per venture company was 20.5 people, nearly 2 more than a year ago. By the end of last year, venture company employment had already reached 700,000, about 2,000 more than the four major conglomerate groups including Samsung and Hyundai Motor.

When venture companies increased employment by 10 people, 4 of them were young workers. Youth employment (ages 15?29) increased by 25,000 over one year, accounting for 37.5% of the total employment increase. Amid a severe youth employment crisis caused by a decline in new hires by large companies, venture companies are playing a significant role in creating jobs for young people. In fact, the youth employment growth rate in venture companies was 15.1%, nearly four times higher than the 4.0% increase in youth employment insurance subscribers nationwide.

By industry, venture companies in ICT services (23,300 people), distribution and services (10,560 people), and electrical, mechanical, and equipment sectors (7,700 people) led employment growth. The employment increase effect of venture companies in non-face-to-face fields such as smart healthcare and education was clearly evident. The employment growth rate of about 7,300 non-face-to-face venture companies reached 17.8%.

Experts believe that new business models centered on non-face-to-face services have emerged after COVID-19, and the scale-up of related startups has led to job creation. Yoo Hyo-sang, a professor at Soongsil University Graduate School of Small and Medium Business, explained, "Startups often adopt expansion strategies to grow their scale rather than focusing on immediate profits and losses, which results in greater employment effects compared to general companies," adding, "Young talents’ preference for startups has also increased."

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