Unfounded fears regarding "Venture Crisis"

Responding to rising public anxiety over the "venture enterprise crisis", the Ministry of Finance and Economy fought back, saying that these worries were the result of a collective misunderstanding.

In a report released on the 30th titled "The Truth and Facts concerning the Venture Enterprise Crisis," the Ministry affirmed that, "The current rate of newly launched enterprises is still very high, and venture companies with sound management are continuing to grow with investors recognizing their investment value."

The Ministry added that the sluggish state of the Kosdaq market has placed a strain on venture firms, but noted that this offers the opportunity for a venture industry shakedown in which only truly stable companies will survive.

According to the report, the number of venture start-ups for the period ending in May was 2176, which translates to an 80% increase over the 2892 recorded for the entire year last year.

In addition, the first-half gross income recorded by the top 100 mid-sized information technology companies reflected an increase of 62% from the same period last year. The reported gross income of the companies was 2.44 trillion won. At present, the projected short-term profit for the year will record 119% growth, exports 128%, and the employment by venture companies will increase 31%.