Minister of SMEs and Startups Park Young-sun on Jan. 29 gives a briefing on venture investment last year and plans for such investment this year at Government Complex-Seoul. (Yonhap News)

By Song Baleun and Kim Hwaya

Thanks to the second venture boom and brisk private investment, the amount of venture investment last year exceeded KRW 4 trillion for the first time in setting a record high.

Minister of SMEs and Startups Park Young-sun on Jan. 29 told a news conference at Government Complex-Seoul that venture investment in 2019 reached KRW 4.2 trillion, up 25% from KRW 3.4 trillion in 2018.    

The number of companies that received venture investment funds increased from 1,399 in 2018 to 1,608 last year.

The country's ratio of venture investment to gross domestic product also increased from 0.13% in 2017 to 0.22% last year.

Companies related to the Fourth Industrial Revolution that led the second venture boom posted investment worth KRW 1.7 trillion last year, up 27% from KRW 1.34 trillion in 2018 and accounting for 40% of such investment. By sector, those in smart health care led with KRW 617.2 billion, followed by sharing economy businesses, fintech and big data.

To keep such growth going, the Startups Ministry will invest KRW 900 billion in setting up fund of funds worth KRW 1.9 trillion and a "jump up" fund worth KRW 950 billion to develop unicorns, or companies valued at USD 1 billion or more.

The ministry will also announce the K-Unicorn Project, which will promote the growth of unicorn companies, and a policy to accelerate angel investment to encourage individual investment in small startups.

brightsong@korea.kr