Cruel November for Pseudo Venture Businesses

400 of ‘pseudo venture businesses’ will be deprived their certification in November of this year.

In 30th of July, Small and Medium Business Administration (AMBA) announced that the administration performed assessment for the innovation ability of 10,182 businesses with four sub-fields such as human resources, business prospect and etc. Unfortunately 421 businesses marked below 50 points. AMBA will cancel the ‘Venture Business certification if they mark below 50 points after November of this year. AMBA explained that 1,346 businesses are under assessment or refuse the assessment. Therefore the number of pseudo businesses will increase.

AMBA already cancelled 478 businesses that had not satisfied the conditions of ‘Venture Business’; 249 closed businesses, 29 merged businesses, etc.

When ‘Venture Business certification is cancelled, the business loses lots of benefits such as; preferential support by public fund, taxation exemption, high quality human resources, low rate loan, etc. ABMA will increase the criteria of ‘Venture Business’ by 5 points every year until year 2005 when the Venture Business’ certification system is abolished.

Kwang-Am Cheon iam@donga.com