The Teheran-ro in Korea was once referred to as the hub of Korean venture companies. (Image courtesy of Flickr/CCL)
SEOUL, Nov. 26 (Korea Bizwire) – The number of Korean venture companies surpassing ₩100 billion in annual revenue exceeded 900 for the first time last year, signaling robust growth in the country’s innovation-driven economy, the Ministry of SMEs and Startups announced on Tuesday.
The total reached 908 firms in 2023, a 4.5% increase from 869 in 2022. The number has grown steadily over the years, rising from 587 in 2018 to 739 in 2021 and now nearing the 1,000 mark.
These “₩100 billion venture firms” collectively employed 330,000 people in 2023, a 3% increase of 10,000 jobs from the previous year. Their combined workforce surpasses that of major conglomerates, including Samsung (278,000 employees), Hyundai Motor Group (198,000), LG (155,000), and SK (115,000).
Revenue for these firms totaled ₩235 trillion ($178 billion), a 3.7% increase year-on-year. If treated as a single corporate entity, their revenue would rank third in Korea, trailing only Samsung (₩295 trillion) and Hyundai (₩275 trillion) while surpassing SK (₩201 trillion) and LG (₩135 trillion).
Venture firms are increasingly defined by rapid, tech-driven growth. Over the past three years, more than 100 new firms joined the “billion-won club” annually. Notably, the share of firms established within the past decade rose to 24.3% in 2023, up from 17.2% in 2018.
The ministry credited this growth to its policies supporting startups, ventures, and research and development (R&D) since its inception in 2017. These firms invest heavily in innovation, with an average R&D spending ratio of 2.8%, significantly higher than that of small enterprises (0.8%) and large corporations (1.8%).
₩100 billion venture firms now account for 32.5% of all small and medium-sized enterprises with over ₩1 trillion in revenue. They contribute 24.9% of total revenue and 24.1% of employment within the sector, underscoring their critical role in the Korean economy.
With steady growth in both revenue and employment, Korea’s venture firms are emerging as a vital economic backbone, driving innovation and enhancing the nation’s global competitiveness.
Ashley Song (ashley@koreabizwire.com)
