Revolutionizing Venture Capital to Accelerate Innovation in South Korea.
This study discusses the need to boost innovative venture companies in South Korea to escape low economic growth and accelerate the Fourth Industrial Revolution. The research suggests ways to enhance the supply of venture capital for nurturing these companies. The Korean venture investment market has grown rapidly in quantity but lacks sufficient mid-to-late-stage venture capital for company growth. To address these issues, improvements in corporate venture capital systems and financial company integrity regulations are needed to encourage private sector venture investments. Additionally, expanding venture loans and considering the introduction of Business Development Company systems and Silicon Valley bank business models could help increase the supply of patient capital for venture company growth. Introducing differential voting rights systems during the venture company exit phase could boost incentives for M&A and IPOs, while activating the high-yield corporate bond market and secondary market is also crucial.