Venture Entrepreneurs: "Urgent Need for Labor Improvement, Workforce Development, and Regulatory Innovation... Must Revitalize the Innovative Venture Ecosystem"

Ko Young-ha, Chairman of the Korea Angel Investment Association (from the left), Kang Sam-kwon, Chairman of the Korea Venture Business Association, Kim Boon-hee, Chairwoman of the Korea Women Venture Association, and Kim Sun-oh, Senior Vice Chairman of the Korea Venture Business Association, are explaining the three major industry issues at a press conference held on the 25th.
[Photo by Korea Venture Business Association]

[Asia Economy Reporter Kwak Min-jae] Venture entrepreneurs identified three urgent policy issues that must be addressed to overcome difficult domestic and international economic conditions and swiftly transition to an innovative nation: labor improvement, workforce development, and regulatory innovation.

On the 25th, at the ‘Venture Summer Forum’ meeting held at Paradise Hotel in Haeundae, Busan, Kang Sam-kwon, chairman of the Korea Venture Business Association, emphasized the need for "labor improvement to promptly supplement the uniform 52-hour workweek system by enhancing flexibility in working hours." Regarding workforce development, he pointed out that due to the mismatch and the absence of a comprehensive government body overseeing talent development policies, there is still a shortage of software personnel in the field. Chairman Kang stressed, "It is necessary to establish a clear direction for resolving entry regulations for new industries, such as setting a reference country system, and to strengthen the authority of control towers like the Office for Government Policy Coordination, as well as to discover and discuss agendas centered on private experts to resolve regulations more quickly and efficiently."

Venture entrepreneurs attending the meeting unanimously expressed that local venture companies are struggling due to the outflow of talent. Jung Chung-kyo, head of the Busan branch of the Korea Venture Business Association, lamented, "The most painful issue is that talents nurtured at local universities and academies leave for the Seoul metropolitan area after being recommended by seniors or colleagues there, due to the realistic problem of wage gaps between large corporations and small and medium enterprises. If mid-career talents in their 3rd to 5th years, who are in their prime working years, are taken away, local venture companies can only be left devastated."

In fact, the shortage of high-level software personnel is intensifying. This situation was also revealed in a survey conducted by the association last year, which showed that venture companies are short of an average of three software personnel. Even when software personnel are hired, 66% of respondents reported that it takes between six months to over a year for them to reach the required level.

Along with this, the association proposed the removal of entry regulations for new industries. As directions for regulatory innovation, they emphasized the need for regulatory reforms aligned with global standards, strengthening the practical authority of regulatory innovation control towers, easing regulations on new industries, and promoting swift institutionalization.

At the press meeting, three core venture promotion tasks were also raised: spreading entrepreneurial culture, revitalizing and globalizing local venture ecosystems, and strengthening cohesion among private organizations related to innovative ventures. Chairman Kang said, "To spread entrepreneurial culture, we will further strengthen the nurturing activities of senior companies for startups, and to enhance the external scale and policy activities of the private organization, the Innovation Alliance, we plan to hold a meeting of all chairpersons next month."

The association is holding the ‘20th Venture Summer Forum’ under the theme ‘A Better Tomorrow, Challenges for the Future’ from the 24th to the 26th in Busan. The venture industry is emphasizing the urgent need for government regulatory improvements and tax support to revitalize the venture investment market, which has been contracted due to the triple high crisis of high inflation, high interest rates, and high exchange rates.

At the event the previous day, Lee Young, Minister of SMEs and Startups, said, "As the government recently relaxed resolution regulations on satellite image security after a meeting of five ministers, we will continue to innovate regulations that hinder the future with determination." He also promised the introduction of multiple voting rights and the implementation of a pilot project for a delivery price linkage system.

Busan=Reporter Kwak Min-jae

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