869 Venture Companies Surpass 100 Billion Won in Annual Sales

The number of venture companies with annual revenue exceeding 100 billion won (US$76.8 million) last year reached the record high of 869, the highest figure in history. The growth rate also set a new record, achieving an unprecedented 17.6 percent increase, or 130 companies, compared to the previous year’s 739 companies. The number of venture companies reaching 1 trillion won in revenue increased by 5 from the previous year, totaling 26.

The Ministry of SMEs and Startups announced the results of a survey on Nov. 27, examining the financial status at the end of 2022 based on sales of 127,851 companies that have received venture certification at least once since the implementation of the venture certification system in 1988.

Out of 869 companies, 674 have consistently exceeded the 100 billion won revenue mark for the second consecutive year since 2021, earning them the title of “Venture 100 Billion Won Companies.” Notably, 134 new companies, including Team Fresh, Ably, and Mother’s Pharmaceuticals, entered the Venture 100 Billion Won Companies list. Additionally, 61 companies, previously part of the list but excluded at some point, re-entered this year. Among the Venture 100 Billion Won Companies, 82 firms distinguished themselves by maintaining a revenue growth rate surpassing over 20 percent for three consecutive years, earning the distinguished title of “Gazelle Venture 100 Billion Won Companies.”

When classified by sector, Venture 100 Billion Won Companies were most prevalent in general manufacturing at 39.1%, followed by advanced manufacturing at 35.4%, and general services at 12.3%. In more detail, the distribution was as follows: machinery, automobiles, and metals in the general manufacturing sector accounted for 24.9 percent; computers, semiconductors, and electronic components in the advanced manufacturing sector made up 16.9 percent; and food, textiles, non-metals, and other manufacturing in the general manufacturing sector constituted 14.3 percent. The average number of years in business was 20.6, with an average period of 18.2 to achieve 100 billion won in revenue after founding. Furthermore, the proportion of listed companies was 44.1 percent.

When classified by industry, Gazelle-type Venture 100 Billon Companies were most prevalent in advanced manufacturing at 35.4 percent, followed by general services at 26.8 percent and general manufacturing at 22.0 percent. The average number of years in business of Gazelle-type Venture 100 Billon Companies was 16.4 years, shorter than the overall average. Particularly, the average number of years in business of Gazelle-type Venture 100 Billon Companies in Advanced Service sectors such as software was 9.2 years.

Twenty six venture companies joined the 1 Trillion Won Club in revenue, including Naver, Nexon Korea, Deutsch Motors, Celltrion, NCSOFT, L&F, Kakao, and Kakao Entertainment.

The total revenue achieved by Venture 100 Billion Won Companies amounted to 229 trillion won, representing a 16.5 percent increase compared to the previous year. When viewed as a single corporate group, it ranked between Hyundai Motor Group with 240 trillion won in second place and SK Group with 224 trillion won in third. In terms of employment alone, the total workforce stood at 320,000, marking a 6.8 percent growth compared to the previous year and surpassing the employment scale of Samsung Group with 274,000 employees.

Meanwhile, the Korea Venture Business Association launched the “Venture 100 Billion Won Club” to foster the venture ecosystem at the event. Through this initiative, the association plans to actively promote private-sector-led cooperation by facilitating regular networking for information exchange and collaboration, exploring support policies for scale-up venture companies, and fostering junior venture enterprises.