SEOUL, April 27 (Korea Bizwire) — South Korea’s investment in startups spiked nearly 61 percent in the first quarter of the year amid hopes of high returns, government data showed Tuesday.
A total of 1.25 trillion won (US$1.12 billion) was invested in promising venture firms and startups in the January-March period, up 61.1 percent from a year earlier, according to the data from the Ministry of SMEs and Startups.
It was the highest amount for the first quarter and the second-largest quarterly figure after the 1.41 trillion won for the fourth quarter of 2020.
The ministry said local investment in startups shot up in the first quarter amid a global venture boom.
Investment in the distribution, ICT, biopharmaceutical and medical sectors rose sharply as investors saw them as promising post-coronavirus industries.
The data also showed the number of venture investments soaring 37.8 percent on-year to 989 cases, with that of investment-receiving firms spiking 37.8 percent to 558.
The amount of created venture funds stood at 1.46 trillion won in the first quarter, up a whopping 186.7 percent from a year earlier, according to the data.