• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.18 no.5
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• pp.63-75
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• 2023

This study conducted empirical analysis on the factors affecting the investment performance of 205 domestic venture funds (with a total liquidation amount of 7.25 trillion KRW) newly formed from 2007 to 2017 and completely liquidated as of the end of 2022. Due to the nature of private equity funds, obtaining empirical data is extremely challenging, especially for data post-COVID-19 era liquidations. Nevertheless, despite these challenges, it is meaningful to analyze the impact on the investment returns of domestic venture funds using the most recent data available from the past 10 years. This study categorized the factors influencing venture fund performance into external environmental factors and internal factors. External environmental factors included "economic cycles," "stock markets," "venture markets," and "exit markets," while internal factors included the fund management company's capabilities in terms of "experience," "professional personnel," and "assets under management (AUM)." The fund structure was also categorized into "fund size" and "fund length" for comparative analysis. In summary, the analysis yielded the following results: First, the 3-year government bond yield, which represents economic cycles well, was found to have a significant impact on fund performance. Second, the average 3-month KOSDAQ index return after fund formation had a statistically significant positive effect on fund performance. Third, the number of IPOs, indicating the competition intensity at the time of venture fund liquidation, was shown to have a negative effect on fund performance. Fourth, it was observed that the larger the AUM of the fund management company, the better the fund's returns. Finally, venture fund returns showed variations depending on the year of formation (Vintage). Therefore, when individuals consider investing in venture funds, it is considered a highly effective investment strategy to construct an investment portfolio taking into account not only external environmental factors and internal fund factors but also the vintage year.

• Journal of the Korea Society of Computer and Information
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• v.22 no.6
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• pp.141-147
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• 2017

Along with the recent growth of Fintech industry and low interest rate basis, one of the alternative investment technique for expecting higher investment profit, P2P loan using P2P financial system is greatly increasing. P2P loan can be referred to as a type of Crowdfunding that the law of Crowdfunding (adopted to revised Capital Market Act) enacted on January 25th 2016 only allows investment type Crowdfunding so that it can be used as a tool of raising fund for startup and venture companies. Also, it is true that Korean government could not make any legislative foundation related to P2P loan. At this moment, those online platform companies mediating P2P loan are not included as financial companies, expected to cause various legal arguments. Financial Services Commission has released a guideline in February of this year saying that limit of P2P loan is 10 million Korean Won per arbitrating company and 5 million Korean Won per borrower. However, what is more important is to make a law supporting this institutional system. If legislation on P2P loan is implemented without care, it may disturb growth of the field but it may result in the damage of investors if not clearly defined by law. As this is the case, first, "revision of execution regulations for loan business" should take place as soon as possible to intensify inspection of loan companies by registering them to Financial Services Commission. Second, saving customer fund separately in the their organization. Third, making law on protecting investors such as regulating exaggerative advertisement. Fourth, to have transparent and fair public announcement system, standardized agreement and guideline describing clear understanding on autonomous public information publication of P2P loan online platform business and information on the borrower.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.17 no.29
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• pp.30-36
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• 1994

This paper has provided a systematic technique, the evaluation of the distribution with the NPV ana the derivation of the IRR in the investment alternatives, for the cost estimating analysts. The proposals of investment alternatives are included the venture capital under risk and probabilities at each events, within the cash inflows are occuring at random timing. Therefore. we have considered the followings : 1) the first cash outflow is deterministic. 2) the cash inflows are random variables with known distributions. 3) the lengths of the time intervals between the cash inflows are independently distributed and independent of the cash inflows. In this paper. the first two moments of the distribution, the Laplace Transforms and the convolutions are computed for both independent cash inflows and mutually exclusive alternatives as in the case of quite correlated cash inflows.

• Journal of Korean Society for Quality Management
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• v.17 no.1
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• pp.82-88
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• 1989

This paper has provided a systematic technique, the evaluation of the distribution with the NPV and the derivation of the IRR in the investment alternatives, for the cost estimating analysts, The proposals of investment alternatives are included the venture capital under risk and probabilities at each events, within the cash inflows are occuring at random timing. Therefore, we have considered the followings ; 1) the first cash outflow is deterministic, 2) the cash inflows are random variables with known distributions, 3) the lengths of the time intervals between the cash inflows are independently distributed and independent of the cash inflows. In this paper, the first two moments of the distribution, the Laplace Transforms and the convolutions are computed for both independent cash inflows and mutually exclusive alternatives as in the case of quite correlated cash inflows.

• 한국벤처창업학회:학술대회논문집
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• 2020.06a
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• pp.19-23
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• 2020

본 연구는 벤처캐피탈의 투자심사단계 및 투자 이후 사후관리단계에서의 리스크 관리·활용과 투자성과 사이의 관계를 살펴보았다. 즉, 투자심사단계에서는 투자대상기업을 발굴한 벤처캐피탈의 리스크 분석 및 대응방안의 활용수준과 투자성과와의 관계를 규명하였고, 사후관리단계에서는 리스크 관리를 위한 모니터링 활동과 투자성과와의 관계를 규명하였다. 본 연구에서는, 첫째, 투자심사 단계에서의 경영리스크 및 재무·법률 리스크 분석 및 활용 수준이 정량적인 투자성과, 특히, 특허 등록수에 긍정적인 영향을 미치는 것으로 나타났다. 둘째, 벤처캐피탈의 주요 역할인 투자 이후의 모니터링에 대하여는, 주관적 투자 만족도에 긍정적인 영향을 미치는 것으로 나타났다. 본 연구를 통하여 투자대상기업을 발굴하여 리스크 관리 중심으로 투자를 심사·집행하고, 투자 이후 리스크 관리 중심으로 투자기업의 가치를 증대하기 위하여는 벤처캐피탈리스트의 역할이 특히 중요하다는 것을 알 수 있었다. 투자기업이 보유한 자원·역량에 한계가 있다는 점을 고려할 때, 벤처캐피탈의 역량이 투자기업에 지원되는 것은 해당 기업이 지속적으로 성장하기 위한 바탕이 될 것이다.

• The Journal of the Korea Contents Association
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• v.16 no.4
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• pp.466-476
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• 2016

Technology-holding company was introduced in 2008 according to the Korean related law. In the end of 2014, technology holding company of university amounts to 39 companies, and ETRI Holdings is only the company belonging to the research institute among these companies. The technology holding company was launched to support a technology transfer from university or research institute to companies, and to boost up start-ups. Though 7 years has passed after the first technology-holding company was launched, there is no success model until now. Holding company is basically an investment company, which earns a profit from subsidiary company. The business model of a holding company is similar to venture capital that invests in start-ups. A direction of desirable business model of technology-holding company was suggested in this paper based on the case study on 2 Korean venture capital company. Holding company is generally categorized into two types. One is a pure holding company that only get a profit from subsidiary company, and the second is a operating holding company that creates an extra business revenue in addition to the role of pure holding company. In this paper, it is suggested that a technology holding company is recommended to be a operating holding company rather than a pure holding company.

• Journal of Venture Innovation
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• v.1 no.2
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• pp.35-46
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• 2018

The research on the efficiency analysis of domestic auto parts companies is mostly based on the calculation of the magnitude of the performance creation such as the sales amount compared to the input assets. However, the performance indicators such as sales, operating profit, and net profit are directly related to the cost structure and This cost structure is affected by changes in the firm's asset and capital structure. As a result, it is considered that efficient capital procurement needs to be done at the same time to create efficient management performance through proper investment. This study focuses on this point and attempts to measure the efficiency of procurement capital relative to the sales and other performance indicators generated by the first 33 suppliers who supply parts to Hyundai Kia Motors. Among the methods of evaluating efficiency, the DEA model based on the linear programming method is most widely used as a nonparametric method but The efficient frontier-based DEA model has the limitation that it can not use the variables that have a downward influence on the efficiency. This is inadequate to directly consider variables such as borrowings and total liabilities related to capital procurement. In this study, the efficiency of capital procurement was measured using Worst Practice DEA and the improvement direction of the capital procurement aspect of domestic auto parts companies was suggested

• Journal of the Korea Academia-Industrial cooperation Society
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• v.20 no.3
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• pp.366-376
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• 2019

Youth unemployment reached a record high in 2017, and business revitalization is emerging as a means of overcoming this situation. The number of venture companies and amounts of new venture investments are increasing year on year, and the government has upgraded Small and Medium Business Administration to the Ministry of SMEs and Startups. However, the success rate of startups is relatively poor. Over the past three years only 39.1% of Korean startups survived and 90% of companies failed in the Valley of Death phase. Survival this phase is critical for early startups, and thus, the amount and timing of investments are critical. Current models for establishing business startups do not effectively attract investments because they lack practical, corporate evaluation variables. In this paper, we develop a mixed process that incorporates the factors and business models focused on by venture capital investors. In addition, we compared our Death Valley Venture (DVV) process with current methods and provide an example of its application.

• Journal of Korea Society of Digital Industry and Information Management
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• v.15 no.4
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• pp.197-212
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• 2019

The purpose of this study is to identify the maturity stages of venture firms through classification analysis, which is widely used as a big data technique. Venture companies should develop a competitive advantage in the market. And the maturity stage of a company can be classified into five stages. I will analyze a difference in the growth stage of venture firms between the survey response and the statistical classification methods. The firm growth level distinguished five stages and was divided into the period of start-up and declines. A classification method of big data uses popularly k-mean cluster analysis, hierarchical cluster analysis, artificial neural network, and decision tree analysis. I used variables that asset increase, capital increase, sales increase, operating profit increase, R&D investment increase, operation period and retirement number. The research results, each big data analysis technique showed a large difference of samples sized in the group. In particular, the decision tree and neural networks' methods were classified as three groups rather than five groups. The groups size of all classification analysis was all different by the big data analysis methods. Furthermore, according to the variables' selection and the sample size may be dissimilar results. Also, each classed group showed a number of competitive differences. The research implication is that an analysts need to interpret statistics through management theory in order to interpret classification of big data results correctly. In addition, the choice of classification analysis should be determined by considering not only management theory but also practical experience. Finally, the growth of venture firms needs to be examined by time-series analysis and closely monitored by individual firms. And, future research will need to include significant variables of the company's maturity stages.

• Journal of the Korean Society of Clothing and Textiles
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• v.26 no.7
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• pp.958-969
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• 2002

No one doubts that textile and apparel industries have contributed to economic miracles of the export-led growth in Korea. However, by the turning of 1990′s, these sectors have encountered many problems such as decreasing of domestic production and exports mainly due to wage rise and shortage. Therefore, foreign direct investment to the low labor cost countries has been enlarged for a way of improving its competitiveness and increasing exports. However, no intensive study has been made exploring current investments and future directions. This study focuses Vietnam as one of the promising overseas investment countries. The purposes of this study are to analyze current investment status of Korean textiles and apparel firms in Vietnam, to explore merits and problems Vietnam has, and to present useful implications and strategies for Korean textiles and apparel companies. Analysis of current secondary data suggests that Korean apparel industry, rather than textiles industry, have invested more in Vietnam, mostly in southern Ho Chi Minh City. Investments of Korean apparel and textile firms have shown steady increase from 1990 but have turned to a decrease from 1995. Findings suggested that Vietnam has merits for attracting foreign investment since it provides relatively cheap labor and outstanding skillful hands suitable for apparel and textiles industries. In addition, because of EU quota increase and the trade agreement between Vietnam and USA it is likely for firms in Vietnam to increase exports to EU and USA Rapid expansion of domestic apparel market and "Korean trend (Han Rue)" in Vietnam resulted from successful star marketing of Korean firms are another merits Vietnam has to the Korean fm. However, regulations of central government, low efficiency of bureaucratic and stiff administrative process, difficulty of making decision in case of joint venture, lack of social overhead capital, high factory construction costs, weak construction condition, and the excessive competition among investment enterprises have found to be problems. Based on pros and cons of investment to Vietnam, marketing strategies, practical implications and future directions were suggested.