Concerns Over Venture Investment Slowdown...Private Sector Urges Government to Support Mother Funds and Early-Stage Startups

Jo Joo-hyun, Vice Minister of the Ministry of SMEs and Startups [Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The government discussed measures to revitalize the startup and venture ecosystem with private sector stakeholders. The industry emphasized the government's role, including the Korea Fund of Funds, and the need to strengthen support for early-stage startups.

On the 3rd, Cho Joo-hyun, Vice Minister of the Ministry of SMEs and Startups, held the '6th Corporate Risk Response TF Meeting' at the Korea Technology and Information Promotion Agency for SMEs in Yeouido, Seoul.

At the meeting, they discussed the impact of interest rate hikes and negative economic outlooks on the startup and venture ecosystem, as well as response measures.

Experts such as startup incubator (accelerator) representatives, university startup support center heads, and related organizations including Korea Venture Investment Corp., Korea Institute of Startup & Entrepreneurship Development, and the Korea Venture Business Association attended.

This year, the venture investment market saw venture investment amounts and fund formations surpass 4 trillion won for the first time in the first half, but concerns about contraction remain due to the 'three highs (3G)' crisis of high inflation, high interest rates, and high exchange rates.

Participants reviewed major risks to venture investment and the startup environment amid recent domestic and international economic conditions and discussed field difficulties.

Industry stakeholders stated that the government's role, including the Korea Fund of Funds, is crucial to alleviate concerns about private investment contraction, and especially emphasized the need to strengthen support for early-stage startups. They also requested the application of negative regulations to activate startups in new industries and new technology fields.

Vice Minister Cho stressed, "Despite the difficult domestic and international economic situation, it is time for the government and private sector to come together and pool wisdom so that startups and venture companies can grow further."

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