• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.19 no.3
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• pp.81-95
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• 2024

This study empirically analyzed the effectiveness of government financial support policies for venture enterprises in the Daejeon region, using raw data obtained from the Small and Medium Venture Business Administration's survey results from 2016 to 2021. Daejeon, considering its economic significance, has a significant proportion of venture enterprises in its economy compared to the national average, with a focus on technological development. Conducting regression analysis yielded several key findings. Firstly, loan and guarantee support is effective for improving sales and market share, while R&D support is effective for technological development. Second, R&D and loan support have the most significant impact on sales in the fourth stage (maturity), while guarantee support is most influential in the third stage. Third, in industry analysis, the coefficients representing the effects of financial support were larger across all performance indicators compared to firm level data analysis. Based on these empirical analysis results, the study proposes several policy implications as follows. First, the government should actively provide funding support to venture companies rather than leaving investments to the capital market. Second, the methods and targets of funding support should vary according to the purpose of the support. Third, it is necessary to establish a platform that connects venture companies with private investors to commercialize developed technologies. Fourth, the funding support of venture capital for technology-intensive venture companies should be expanded.

• Journal of Venture Innovation
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• v.7 no.2
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• pp.125-141
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• 2024

This study is conducted to review issues related to the use of the Simple Agreement for Future Equity(SAFE), which has been introduced as one of the venture investment methods in Korea since 2020, and to suggest policy implications for facilitating the utilization of this investment method. With the recent rapid decline in venture investment, private venture investment associations little use the SAFE in recent years. However, after adopting the SAFE, Korean's SAFE have been utilized mainly by policy financial institutions, and it is evaluated that the system has been revitalized to some extent, with some private venture investment associations also utilizing the SAFE. The results of comparing the SAFE with other equity investment contracts, the additional risk rate related to the failure of follow-up investment is estimated to be approximately 1.8%p. This shows that the additional risk is not greater than the advantages of the SAFE. In other words, it can be judged at a level where it is possible to offset advantages of the SAFE that investors must bear with the additional risks, which shows that there are less burden in terms of using the SAFE. In light of the fact that the venture investment ecosystem can become more active as various venture investment methods are developed and utilized, it is necessary to actively utilize the SAFE method to support start-up companies.

• Journal of Digital Convergence
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• v.11 no.5
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• pp.73-81
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• 2013

The paradigm of IT ecosystem has been rapidly changing into open ecosystem irrespective of the territory on which the device, software and contents are located. IT venture ecosystem which can compete and collaborate with the global companies is really needed because the global opportunity of IT venture company has been expanding. Research model based on PEST-SWOT-AHP(Analytic Hierarchy Process) model was employed to analyze the current status and problems of IT venture ecosystem in Korea. Survey was conducted with 20 experts who are involved in venture companies, university, R&D research institute, and investment companies as a working group supported by the Ministry of Knowledge Economy (MKE). The empirical result showed that global promotion of IT ventures, coexistence and development of large enterprises and ventures, revitalization of investment infrastructure, and building of smart venture ecosystem are derived to revitalize IT venture ecosystem and suggested global revitalization model for smart IT venture ecosystem.

• Journal of the Economic Geographical Society of Korea
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• v.5 no.1
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• pp.49-68
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• 2002

Recently, the venture industry in Korea has grown so rapidly because of the economic restructuring and the governmental inducement policies. This study first attempts to investigate the governmental policies for venture business development. Secondly, this study probes into the characteristics and the locational conditions of the venture business in the Chungbuk region. Lastly, this study tries to formulate the policies to develop the venture industry in the Chungbuk region. This study finds that the governmental inducement policies for venture business are various and extensive. From the cross-sectional and spatial-distributional analyses of venture business statistics for the Chungbuk region, it is found that the most venture businesses in the Chungbuk region are concentrated in the manufacturing sector rather than the information technology sector and they are geographically concentrated around the Joongbu expressway. Since the vicinity of the Joongbu expressway provides fast access to the capital region and cheap land, many manufacturing firms have moved from the capital region to that area in the Chungbuk region.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.16 no.6
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• pp.31-42
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• 2021

The importance of startups and ventures in the Korean economy is growing. This study measured whether the start-up and venture ecosystem is growing, including the growth of startups and ventures. The startup and venture ecosystem consists of startups and ventures, investors, and government, which are the main actors of the 'ecosystem', and their movements were measured with 25 quantitative indicators. Based on the original data of the time series from 2010 to 2020, the startup and venture ecosystem index was calculated by applying weights through the comprehensive stock index method and AHP. In 2020, the startup and venture ecosystem grew 2.9 times compared to 2010, and the increase in the government index had a significant impact on growth. Also, the individual indicators that make up each index in 2020, the corporate index had the greatest impact on the growth of the number of 100-billion ventures, while the investment index had a recovery amount and the government index had a significant impact. Based on the original data, the startup and venture ecosystem index was analyzed by dividing it into ecosystems (startup ecosystem and venture ecosystem), industry by industry (all industries and manufacturing industry), and region (Korea and Busan). As a result, the growth of the startup ecosystem over the past decade has been slightly larger than that of the venture ecosystem. The manufacturing was lower than that of all industries, and Busan was lower than that of the nation. This study was intended to use it for the establishment and implementation of support policies by developing, measuring, and monitoring the startup and venture ecosystem index. This index has the advantage of being able to research the interrelationships between major actors, and anyone can calculate the index using the results of official statistical surveys. In the future, it is necessary to continuously update this content to understand how economic and social events or policy support have affected the startup and venture ecosystem.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.4
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• pp.39-47
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• 2015

"Series A Crunch"problem has become worse off as funding gap between angel seed investment and traditional VC Series A investment is getting the larger due to big boom over early startup investment both in Korea and US. The strong needs for new concept of fund alternative such as bridge fund is outstanding to fill up the funding gap in the early stage of venture investment. This research is brought to define the concept of 'Series A Crunch' problem and to diagnose its causes, eventually, popping up 'the concept of Micro VC Fund' to come up with this problem in Korea. Also, this paper suggests the policy alternatives to introduce Mivro VC Fund and accommodate its successful performance.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.10 no.2
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• pp.69-76
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• 2015

This paper aims to analyze how the Venture Business Tendency of North Korean refugees affects social adaptation and family health, and to provide proposals for policy making on the issue. For the purpose, we specifically suggest analysis of activation plan that 48 Venture Business North Korean managed Enterprise types, Entrepreneur type, Business type, Gender, Profit etc. As a result of analysis of actual proof, First, The Venture Business North Korean refugees managed need to consult to be technology business professionally because they features to be self-employment than expertise and knowledge basis type. Second, the rate of success of North Korean refugees is researched that female is higher than male. Third, to support Venture Business of North Korean refugees, they need one on one incubating support syspen why they are inexperienced in network, technical skills. Fourth, Venture Business Tendency of North Korean refugees affects social adaptation and family health. Since mid 1990's, North Korean refugees have come to South Korea through China or third countries due to collapsing economy of North Korea. In an effort to help those escaping from North Korea, the Seoul government provided them with a 3-month settlement program. But they have had experienced difficulties in communication, cultural assimilation, and confusion in their value system and identity. For the purpose, one-on-one interview was carried out on 45 North Korean refugees living in Seoul and neighboring cities, and the interviewed group was classified into three categories: single households, single-parent families and families with parents. The study findings demonstrated four policy alternatives to help improve quality of life of North Korean refugees and to help their successful settlemen.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.6 no.3
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• pp.85-107
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• 2011

This study analyzed the influence of supporting policy fund on financial performance of small & medium sized venture firms. The outcomes are as follows. First, it was found that 11 dependent variables in profitability, stability, activity, and growth represent have significantly positive influence on financial performances 4 years after policy fund rather than prior to the fund. In short, supporting policy fund is found to bring improvement on financial performance. Second, it was found that growth rate in asset as a growth indicator and interest coverage ratio as a stability indicator have significantly positive influence on operating income to sales and ROA, respectively. Third, it was found that operating income to sales as a profitability indicator and asset turnover ratio as an activity indicator have positive influence on current ratio. Finally operating income to sales as a profitability indicator and growth rate in sales as a growth indicator have positive influence on interest coverage ratio.

• ETRI Journal
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• v.15 no.2
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• pp.69-74
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• 1993

The consumer surplus under the open economy is greater than that under the closed economy from the viewpoint of social welfare. This indication has been proved when only the product market is considered. This article is to show how this result is changed if the R&D market as well as the product market is considered. We find the possibility that the closed economy is preferred to the open economy in case of the (international) R&D joint venture.

• Journal of Korea Technology Innovation Society
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• v.6 no.1
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• pp.41-59
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• 2003

Daedeok Valley, located in the Daejon Metropolitan City, Korea, has around 1,000 start-ups. There is no comprehensive study for the valley except Seol et al.(2002), because the valley is a new one. There was no such valley four years ago, in 1998. This paper defines the spatial boundary, origins and characteristics of the valley. The core area of the valley is Daedeok Science Town. This valley is an outcome of so called the Venture Policy of DJ government and business restructuring after foreign exchange crisis of November, 1997.