810,000 People Work in Venture Companies... 60,000 More Than the 4 Major Groups

Ministry of SMEs and Startups Announces '2022 Detailed Survey Results on Venture Companies'
35,123 Venture Companies in 2022, 50.4% in Advanced Manufacturing and Service Sectors

As of 2022, the total employment in venture companies was recorded at 808,824 people. This is about 60,000 more than the total employment of the four major conglomerates. This indicates that venture companies play an important role in South Korea's employment market.

The Ministry of SMEs and Startups announced on the 10th the results of the "Detailed Survey on Venture Companies," which analyzed the management performance, employment, and research and development (R&D) of 35,123 venture companies as of the end of 2022.

The total number of employees in venture companies is 808,824. This exceeds the total employment of 746,000 in the four major groups?Samsung, Hyundai Motor, LG, and SK?by about 60,000. In particular, with a regular employee ratio of approximately 96.8%, venture companies are also contributing to the creation of stable jobs. However, the total number of employees in venture companies in 2022 slightly decreased compared to 834,627 in the previous year. This is due to the strengthened eligibility screening following the reform of the venture company verification system, which led to a decrease of 3,196 venture companies compared to the previous year.

The total sales of venture companies in 2022 amounted to 211 trillion won, ranking fourth in the business world after Samsung, Hyundai Motor, and SK. The average sales per company increased by 250 million won compared to the previous year, reaching 6.5 billion won. The ratio of R&D expenditure to sales in venture companies was 4.2%, which is 2.6 times higher than that of large corporations, 4.2 times higher than mid-sized companies, and 6 times higher than small businesses. This suggests that venture companies are actively engaged in technological development activities compared to other business groups.

By industry, software (SW) development accounted for 12.2%, information and communications 10.5%, other services 8.2%, other manufacturing 7.2%, electronic components 6.7%, and machinery 6.6%. Advanced manufacturing and services such as SW development and energy made up 50.4%, more than half. Regionally, the Seoul metropolitan area accounted for 58.1%, indicating continued concentration in the capital region, while Jeonbuk, Gangwon, and Ulsan were below 2%, and Jeju and Sejong were below 1%.

Lee Eun-cheong, Venture Policy Officer at the Ministry of SMEs and Startups, said, "Following the private-led reform of the venture verification system in February 2021, which abolished guarantee and loan types and evaluated innovation and growth potential, the total number of venture companies temporarily decreased. However, the system reform is shifting toward selecting companies with excellent innovation and technological capabilities as venture companies."

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