On the 27th, the Ministry of SMEs and Startups (MSS) and the Fair Trade Commission (FTC) of South Korea participated in the Q2 2024 regular quarterly meeting of the Corporate Venture Capital (CVC) Committee under the Korea Venture Capital Association. Key participants included GS Ventures, POSCO CAPITAL, CJ Investment, SeAH Capital, KOLON INVESTMENT, EcoPro Partners, and WONIK Investment Partners, who shared updates on the 2023 CVC status and progress on policies to boost CVC activity.

Analysis from MSS and FTC revealed that of the 359 venture capital entities in Korea (comprising 247 venture investment firms and 112 specialized new technology business finance companies), around 98 are classified as CVCs. In 2023, Korean CVCs invested approximately KRW 2.1 trillion, accounting for 19% of the total venture investment of KRW 10.9 trillion.

The meeting featured robust discussions on deregulation and policies to energize the CVC sector, led by industry representatives including Heo Jun-yeong, CEO of GS Ventures, along with officials from MSS and FTC. CJ Investment’s CIO, Kim Jun-sik, expressed hope that the committee meeting would lead to various initiatives being implemented, thereby supporting the development of SMEs and startups in Korea.

Kim Bong-deok, the Venture Policy Officer from MSS, stressed the need for the government’s active involvement to fully activate the CVC sector, despite its gradual stabilization in the venture investment market since the implementation of the general holding company CVC system at the end of 2021. He also outlined plans to regularize biannual statistics on CVC activities and expand the annual Global CVC Conference, making it a more comprehensive event.