[New Year's Address] Kang Sam-gwon, Chairman of the Korea Venture Business Association, "The 52-hour Workweek Intensifies Venture Workforce Shortage... Institutional Innovation Cannot Be Delayed"

Kang Sam-gwon, Chairman of the Korea Venture Business Association.
[Photo by Korea Venture Business Association]

[Asia Economy Reporter Junhyung Lee] The Korea Venture Business Association pointed out on the 30th in its New Year's address that the 52-hour workweek system has exacerbated the manpower shortage in venture companies. It also emphasized the need for innovation in the economic system and institutional reforms.

Kang Sam-gwon, chairman of the Korea Venture Business Association, stated in the New Year's address released that day, "With the advancement of the 4th Industrial Revolution last year, conflicts between innovative companies and traditional industries intensified," adding, "The serious shortage of technical personnel across all industries, along with rigid labor policies such as the introduction of the 52-hour workweek system, have worsened the manpower shortage in venture companies." He continued, "However, this year, despite difficult conditions, the venture ecosystem has continued to grow steadily and firmly established itself as a beacon of hope for the Korean economy," and said, "The ‘private-led venture company verification system,’ which allows excellent startups to be recognized as venture companies, was fully implemented, and the government declared the ‘Leap to Become One of the World’s Top 4 Venture Powers,’ providing strong support for venture companies’ challenges toward innovative growth."

According to the '2021 Venture Company Detailed Survey' conducted by the Ministry of SMEs and Startups, as of the end of last year, the sales of 39,101 venture companies amounted to approximately 206.9 trillion KRW, ranking second in the business world after Samsung. The number of venture companies with annual sales exceeding 100 billion KRW reached a record high of 633. There were 17 venture companies with annual sales exceeding 1 trillion KRW. Chairman Kang said, "By the third quarter of this year, cumulative venture investment exceeded 5 trillion KRW, the highest ever, and now Korean venture companies are gaining attention in the global venture investment market, making the arrival of the second venture boom palpable," adding, "This is the result of venture entrepreneurs who created new technologies and markets through challenge and innovation, demonstrating strong entrepreneurial spirit even in the seemingly endless COVID-19 tunnel."

The Korea Venture Business Association plans to strengthen ‘close support services’ for member companies starting next year. Chairman Kang said, "We will enhance close support services for members through practical support in funding and marketing and jointly pioneer the global market," adding, "We will promote technology startups and university startups based on research and development achievements to advance the innovative startup ecosystem." He also added, "We will also make private-sector efforts to cultivate the technical workforce lacking in fields such as software (SW)."

Chairman Kang stated, "As the 4th Industrial Revolution and digital transformation accelerate, innovation across our economic system and institutions is an unavoidable task," and said, "The association will work closely with the new government to help Korea leap forward as an innovation powerhouse full of entrepreneurial spirit."

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