According to the Small & Medium Business Administration (SMBA) of Korea, a total of 2,838 companies in the country received venture investment between 2012 and last year, the investment led to approximately 30,000 new jobs during the period, and the companies’ total employment increased by about 20% between 2015 and 2016.
The job creation effects were particularly conspicuous in younger firms and youth startups. Last year, 237 three-year-old and younger firms were invested by funds of funds and the firms’ total employment reached 4,550 persons at the end of last year, up 63% from a year ago.
Likewise, the youth startups invested by youth startup funds increased their employment by 72% from 1,125 to 1,938 persons between 2015 and last year.
“When it comes to funds of funds, the Korean government invested a budget of 2.6182 trillion won (US$2.35 billion) from 2005 to April this year, and this budget investment led to a private capital inflow of 11.4509 trillion won (US$10.3 billion) into the venture investment market,” the SMBA explained, adding, “It has been found that the financial resources resulted in a significant increase in the number of jobs at young firms and youth startups.”