IPOs
Domestic venture companies are somewhat negative about M&As.
According to the survey on “Venture Management Status and Policy Tasks” conducted on 302 venture companies and 50 venture capital firms by the Korea Chamber of Commerce & Industry, over half of venture companies had negative opinions about M&As. Fully 51.7 percent of venture companies answered that they would choose an IPO rather than an M&A to the question of whether they would consider reviewing any M&A proposal from conglomerates or other companies. The figure is higher than that of the answer that they would consider M&As (48.3 percent).
However, they showed positive responses towards an IPO.
Among the companies questioned about IPOs, 62.9 percent answered they need it to expand company size and get good results, while the remaining 37.1 percent answered that they would go ahead without an IPO.
Not only venture firms but also members of venture capital firms preferred IPOs to M&As. For VCs, 66.0 percent chose IPOs as the way collect investment money, while only 20 percent choose M&As.