Venture Support Policies to Arrive at the End of the Year

The Government has decided to provide general policies such as capital support and tax-exemption to help struggling venture companies within this year.

Lee Hun-jai, Deputy Prime Minister and Minister of Finance and Economy, made this announcement yesterday, at a venture meeting held in the Bank Club in Myeong-dong.

Deputy Prime Minister Lee said, “With the help of the government, honest ventures should be able to stand up again after failure.” He added, “Venture companies have to make an effort to make themselves transparent and should clear themselves from industry-staining companies.”

Furthermore, he added, “Restarting the venture market is like trying to light up rain-soaked wood. We need something more than a kindling; we need petroleum.”

Deputy Prime Minister Lee promised to make next year the year for venture companies as he said, “Additional job places are not increasing in Korean or American large companies; thus, venture companies’ role is important.”

Following this, the Ministry of Finance and Economy decided to launch a taskforce to provide financial and tax-exemption support policies for ventures.

In yesterday’s meeting, the industry demanded: activation of the KOSDAQ, activation of pension fund stock investment, improvements from illegal trade between large and public companies and the government, and support of the government with the honest ventures when they fall.

Elites say venture-supporting policies should be provided carefully, noting the fact that venture companies fell one after the other due to overspending during Kim Dae-jung’s administration, when the administration tried to nurture ventures too fast.

Oh Moon-seok, managing director of LG Economic Research Institute, said, “Just helping struggling companies could bring ethical looseness. Market principles such as the support of structural adjustment and increasing companies’ ability to survive, is needed.”

Chi-Young Shin higgledy@donga.com