Financial Services Commission Chairman: "Venture Business Environment Deteriorating... Will Prepare Support Measures"

Chairman Kim Juhyun Holds Meeting with Venture Industry

Financial Services Commission Chairman Kim Ju-hyun is attending the Emergency Economic Measures Meeting held at the Government Seoul Office on the 6th. Photo by Yoon Dong-joo doso7@

On the 10th, Kim Juhyun, Chairman of the Financial Services Commission, held a meeting with the venture industry and stated, “We will prepare financial support measures for venture companies in collaboration with the Ministry of SMEs and Startups to resolve the industry's funding difficulties.”

Chairman Kim attended the 'Meeting to Prepare Financial Support Measures for Venture Companies' held at Front1 in Mapo, Seoul, and requested policy financial institutions such as the Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, and Korea Growth Investment Corporation to actively expand support for ventures.

At the meeting, the current status of funding difficulties faced by venture companies was reviewed. According to the Financial Services Commission, last year’s venture fund formation amounted to 17.3 trillion won, down 500 billion won (2.8%) from the previous year, and investment execution also remained at 12.5 trillion won, a decrease of 3.4 trillion won (21.8%).

Park Yongrin, Senior Research Fellow at the Korea Capital Market Institute, diagnosed that the recent decline in investment is due more to differences in investment conditions or strategies to confirm the market bottom rather than a lack of funds. He added that if the market recognizes the policy authorities’ commitment to market stabilization, investment sentiment will recover. He also emphasized the importance of expanding operating fund supply by policy financial institutions to prevent venture companies’ cash shortages and establishing secondary funds to support the liquidation of maturing venture funds.

Venture companies and venture capital firms attending the meeting also requested the supply of operating funds to overcome the death valley, continuous investment in growth-oriented companies, and the establishment of secondary funds to liquidate existing investment capital.

Chairman Kim said, “While the investment winter in the venture market that began last year continues, concerns are growing that the overall business environment for venture companies will worsen due to the economic slowdown outlook. To overcome this situation, close dialogue and cooperation between the industry and authorities are necessary. Based on today’s results, we will announce support measures with the Ministry of SMEs and Startups as soon as possible.”

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