Venture Start-ups Quadrupled in Two years in Seoul

The number of venture firms in Seoul has been increasing rapidly since the beginning of this year, with foreign investment growing continuously. According to Seoul city authorities, the number of venture companies in Seoul was only 700 as of the end of 1998, but reached 1773 at the end of last year and 2983 last May, recording a quadruple growth in two years.

As of the end of last May, the ratio of newly established corporations to bankrupt companies was 14.2 to 1, which was twice larger than at the same time of last year.

Investments by foreigners marked a 14.1% rise to US$1.906 billions as of the end of last May, posting a increase of 36.8% on a year-to-year basis.

A city official said that an increase in the number of venture firms means that the center of the industrial structure of Seoul moves toward the high value-added industry from the manufacturing one. And he prospected the number will reach more than 4000 by the end of this year.

Younuk Jung jyw11@donga.com