The past venture corporation industry structure, centered on manufacturing, has recently been reorganized to focus on technology-based service industries such as IT and software.
The Korea Venture Business Association published the 'Analysis Report on the Changes in the Venture Corporation Industry Structure' on the 24th, analyzing the changes in the domestic venture corporation industry structure over the past decade.
The number of domestic venture corporations increased from 24,636 in 2014 to 35,857 in 2024, marking an average annual growth of 3.8%. Among them, manufacturing venture corporations saw an average increase of only 1.6%, while the service industry grew by an average of 7.4%, doubling the number of corporations and leading the transition of the venture corporation industry structure.
The number of high-tech venture corporations increased by an average of 4% over the past decade, while traditional industries saw a growth of 3.4%. The growth trend of high-tech industries has outpaced that of traditional industries, and since 2021, the proportion of high-tech industries among all venture corporations has surpassed traditional industries, marking a transition toward a high-tech industry-centered structure.
The number of new venture corporations reached an all-time high of 6,079 in 2020 but has decreased for four consecutive years, tallying 4,708 in 2024. The main reason for the decline is attributed to a decrease in new entrants in the manufacturing sector, which has led the overall drop. The service industry continued to decline but rebounded in 2024, showing signs of recovery.
In particular, the number of new venture corporations in the research and development and retail sectors surged by an average of 18.8% and 13.8%, respectively, over the past decade. In detail, the research and development services grew primarily in management consulting and medical and pharmaceutical research, while retail showed notable increases in cosmetics and beauty products wholesaling, general merchandise wholesaling, and medical device wholesaling.
Since 2021, the three major sectors of software development, information communication, and other services have consistently maintained a top position, indicating a trend of structural entrenchment.
Moreover, among the 35,857 venture corporations in 2024, 66.7% are concentrated in the metropolitan area (Seoul, Gyeonggi, Incheon), with particularly over 10,000 venture corporations distributed in the Gyeonggi (11,371) and Seoul (10,898) regions.
The metropolitan area (Seoul, Incheon, Gyeonggi) is specialized in service industries, primarily broadcasting services and IT-based services, while non-metropolitan areas (Busan, Ulsan, Gyeongnam, Gwangju, Jeolla, Jeju, etc.) are focused and specialized in manufacturing industries such as machinery, automobiles, and metals.
Song Byeong-jun, president of the Korea Venture Business Association, noted that 'venture corporations are focused on technology-based industries and are establishing themselves as a major growth engine for our economy by creating high value-added industries.' He pointed out that 'current support policies and systems for venture corporations are still stuck in the past and fail to effectively respond to changes in the industrial environment.'
Chairman Song also emphasized that 'it is time to create a flexible and innovative regulatory environment that aligns with changes in the industrial environment, and a new level of regulatory and support system will lead to qualitative growth in the venture industry and sustainable development of the national economy.'