SEOUL, Sept. 26 (Korea Bizwire) – The number of venture businesses with annual sales of over 100 billion won has reached 513, the highest figure since records began in 2005, according to a new survey.
Findings from the survey conducted by the Ministry of SMEs and Startups and the Korea Venture Business Association last year were released on Monday, which showed that among 61,301 businesses deemed as venture businesses by the financial authorities since 1998, over 500 now make more than 100 billion won in annual sales.
The number of venture businesses to join the 100 billion won club went up 39 units compared to last year, the biggest jump recorded during the last five years.
58 new venture capital firms made it to the list this year, including optical sheet maker Glotech and Gilsan Steel and Pipe, which specialize in both strong stainless steel and pipe. 61 were squeezed out of the list from last year, with 42 companies reentering the list.
Though the number of new-entries rose slightly compared to last year, it was found that the number of so called ‘young companies’ that are younger than 10 years, has dropped from 14 to 11.
“Though the number of companies with potential continues to increase, the low-growth trend is slowing down the growth rate of many startup companies,” the Ministry of SMEs and Startups said.
When broken down by industry, the field of medicines, manufacturing, and cosmetics fared well, creating a total of 11 startup companies that now yield annual sales of over 100 billion won.
However, the number of companies that now yield annual sales of over one trillion won dropped to 4 from 6 compared to the same time last year, due to the poor performance of the shipbuilding industry. This left Naver, Coway, Yura Corporation and Sungwoo Hitech.
It is worth noting that IT giants like Naver were included as venture capital firms in the survey, despite their current status in the business world, as the web portal began its business as a start-up company.
One official from the Ministry of SMEs and Startups says, “Despite the fact that conglomerates have experienced negative growth for three years in a row, the number of venture capital firms whose annual sales exceed 100 billion won has hit a record high, becoming a major contributor to the economy.
“A growth strategy that centers around small and medium sized enterprises and startups is still possible, particularly with regard to creating job opportunities.”