Gov`t boosts aid to IT ventures

The government has decided to strengthen aid to venture companies that are faced with difficulties with the lack of a viable profit model and reduced investment resources.

The Ministry of Information and Communication announced July 26 that it would step up support to small and medium-sized venture firms to prevent bankruptcies among blue-chip information-technology companies.

Initially, the ministry plans to organize a gathering on a regular basis among the nation`s key communications carriers, large firms and small and medium-sized venture companies to work out a joint profit model between large IT firms and small venture companies. Also, it will newly establish a so-called corporate support organization within the Information-Communications Technology Transfer Center in order to promote mergers and acquisitions, as well as information sharing, among IT firms. The ministry also will study ways to improve regulations concerning corporate cooperation, including M&A.

At the same time, an investment club specialized in information and communications businesses will be established to supply about 150 billion won of investment funding during the second half of the year so that promising small and medium-sized venture firms could achieve steady growth.