Record High Investment
It is expected that new venture fund investment in Korea would reach a new high since 2000 for two years in a row this year.
According to the Small and Medium Business Administration and the Korea Venture Capital Association, new venture capital investment between January and November this year increased by 14.6% from a year earlier to 1.3953 trillion won. This amount is second only to that of 2000 at 2.0211 trillion won and exceeds the annual total of 2013 at 1.3845 trillion won. This year’s total is estimated to be over 1.5 trillion won given that the new investment increases at a faster pace at the end of the year.
Investment in newly established firms showed a significant increase, too. A total of 439.9 billion won was invested in those firms younger than three years during the 11 months and the investment amounted to 60 billion won in November alone. The ratio of this type of investment to the total venture capital investment went up from 26.7% to 31.5% between 2013 and 2014 as well.
New venture funding is likely to meet the government’s goal for this year, two trillion won, with ease, too. As of the end of last month, the new funding amount totaled 1.8995 trillion won. The amount had been 1.7652 trillion won last year.