Venture Business Verification System, Led by Private Sector Reform... Increase in Investment and R&D Types

[Asia Economy Reporter Kim Bo-kyung] The Ministry of SMEs and Startups announced on the 16th that since the venture business verification system was reorganized from being centered on public institutions to being centered on the private sector in February last year, the number of venture companies in the venture investment and research and development types has increased.

The venture business verification system is a system that confirms and supports companies as venture businesses if they meet certain requirements stipulated in the Venture Business Act and have excellent technological innovation and business growth potential.

The Ministry of SMEs and Startups compared 6,947 companies that were first confirmed as venture businesses during the one year before the system reorganization (February 2020 to January 2021) with 4,876 companies confirmed during the one year after the reorganization (February 2021 to January 2022), explaining that the venture investment type increased from 11.1% to 18.9%, and the research and development type increased from 5.1% to 10.8%, respectively.

Also, manufacturing decreased while knowledge-based service venture companies increased. After the system change, as technological and business innovation were given higher consideration, the proportion of knowledge-based service industries increased from 35.8% to 40.5%, while manufacturing decreased from 55.8% to 48.5%.

The number of venture companies increased from 2,042 in 1998, when the venture business verification system was implemented, to 39,511 at the end of 2020, but decreased to 38,319 at the end of last year. This was because the number of companies whose venture verification validity period expired (19,133) was greater than the number of companies newly confirmed as venture businesses last year (17,956).

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