Korean venture companies’ exports this year are expected to chalk up double-digit growth in seven years.
According to the Korea International Trade Association (KITA) on August 11, exports by Korean venture companies rose 16.0% to US$9.98 billion in the first half of this year from the same period of the previous year. If this trend holds, their exports are expected to record double-digit growth for the first time in seven years since 2010 (50.7%).
Their annual exports have been on the rise since falling for two consecutive years in 2012 (-7.5%) and 2013 (-5.9%). Their exports in June this year added up to US$1.755 billion, up 10.3% from the same period of last year. A venture enterprise is recognized by the government as a company worth receiving support from the government because the company has promising technology and big growth potential among small and medium-sized enterprises or SMEs. A venture start-up is designated in accordance with a special act on venture business promotion.
This year's strong exports by venture start-ups are attributable to the fact that their exports to major nations such as China, Vietnam, and the United States has been on the rise. In the first half of this year, they exported US$2.480 billion to China, an increase of 18.4% over the previous year. Their exports to Vietnam totaled US$1.48 billion, up 67.3 percent from last year. China and Vietnam are the first and second exporting markets for Korean venture start-ups. Their exports to the United States also grew 5.5 percent year on year to US$1.234 billion in the first half of this year.
By item, exports were led by measurement and control analyzers (99.0%), semiconductor manufacturing equipment (31.7%) and flat panel display manufacturing equipment (55.9%). Exports of consumer goods such as soap, toothpaste and cosmetics also grew 37.4 percent from last year