Korean Venture Investment Defies Global Slump

In a remarkable show of resilience, South Korea's venture investment has grown by 11.3% in the first three quarters of 2024, reaching 8.6 trillion won, according to a report by the Ministry of SMEs and Startups. This growth is particularly noteworthy given the global financial environment marked by high interest rates.

Globally, venture investment has decreased by 18.6% compared to the previous year. Europe saw an 11.7% decline, while the United States experienced a modest 6.4% increase. South Korea's positive performance stands out in stark contrast to these trends.

The report highlights significant growth in investments within the "ICT Services" and "Electrical, Machinery, and Equipment" industries, which saw increases of 46.8% and 24.4% respectively. These sectors have been instrumental in driving the overall growth in venture investments.

However, the total fund formation for the first three quarters of 2024 amounted to 8.2 trillion won, representing a 4.1% decrease from the same period last year. Despite this decline, there has been a consecutive increase in fund formation from 2.5 trillion won in Q1 to 3.1 trillion won in Q3, indicating a positive trend.

Minister Oh Young-joo commented on the report, stating, "Despite the challenging global economic situation, South Korea's venture investments continue to grow steadily. With the implementation of the 'Advanced Venture Investment Market Leap Plan' announced last October, we will accelerate this growth and create a world-class venture investment ecosystem."

The Advanced Venture Investment Market Leap Plan is a strategic initiative by the South Korean government aimed at boosting venture investments and supporting innovative ventures. This plan includes specific measures to enhance the investment ecosystem, providing funding, tax incentives, and regulatory support to foster the growth of small and medium-sized enterprises (SMEs) and startups.