South Korea opened its largest startup complex in Pangyo, south of Seoul, on March 22, 2016, as part of its efforts to boost promising local startups and attract foreign companies. (Image : Yonhap)
SEOUL, March 24 (Korea Bizwire) – Venture capitalists continued to pour money into South Korean startup companies this year on hopes for handsome returns following last year’s success amid cheap available capital, data showed Thursday.
The investment in startup companies was tallied at 253 billion won (US$216 million) in the first two months of the year, up 11 percent from a year earlier, according to the data compiled by the Small and Medium Business Administration (SMBA).
Funds designed for venture investment also soared 160.8 percent on-year to 509.6 billion won during the cited period.
Over half of the funds streamed into fledging companies that started their businesses within three years, the SMBA said.
By sector, manufacturing and the bio industry received more funds, while IT and cultural contents drew less money compared with a year ago.’
“The growth in the startup industry and venture capital has improved the business environment for budding entrepreneurs, which is expected to help create quality jobs,” SMBA chief Joo Young-sub said.
Last year, venture capitalists poured a record amount of money, 2.1 trillion won, into novice companies on the back of hopes for lucrative returns from public offerings amid record-interest rates, according to the Korea Venture Capital Association.
The surge in fresh investment is attributed to the stellar returns of fledging companies that went public last year, which prodded investors to pour more money into venture firms.
(Yonhap)
