The Ministry of SMEs and Startups(hereinafter referred to as MSS) announced the results of the “Detailed Survey of Venture Businesses.” The survey analyzed the business performance, employment, and research and development (R&D) of 35,123 venture businesses as of the end of 2022. Venture businesses refer to small and medium enterprises recognized as having innovation and growth potential.

(General status of venture businesses) In 2022, there were a total of 35,123 venture businesses. Out of 35,123, 50.4% were involved in high-tech manufacturing and service industries in 2022.

In 2022, the number of venture businesses decreased by 3,196 companies from the previous year, bringing the total to 35,123. This temporary decrease is likely due to the strengthening of requirements following the reorganization of the venture business verification system in February 2021.

SW development accounted for 12.2% by industry, followed by ICT at 10.5%, other services at 8.2%, other manufacturing at 7.2%, electronic components at 6.7%, and machinery at 6.6%. High-tech manufacturing and services, such as SW development and energy, made up 50.4%.

Looking at venture businesses by region, a significant majority of them (58.1%) are located in the Seoul Metropolitan Area, with a concentration of 54.5% in Seoul and Gyeonggi. Other regions such as Jeonbuk, Gangwon, and Ulsan have less than 2% of venture businesses, while Jeju and Sejong have less than 1%.

(Employment) In 2022, the total number of employees at venture businesses was approximately 810,000.

In 2022, the total number of employees at venture businesses was 808,824. In fact, this number is higher than the total number of employees in the four major conglomerates, which was 746,000.

In venture businesses, over 96.8% of the employees work full-time, which contributes to the creation of stable jobs.

(R&D) The ratio of research and development expenses to sales is 4.2%, which is six times higher than the average ratio for regular small and medium-sized enterprises (SMEs).

The ratio of research and development (R&D) expenses to sales is 4.2% for venture businesses, which is 2.6 times higher than that of large companies, 4.2 times higher than middle-standing enterprises, and six times higher than small and medium-sized enterprises (SMEs). This suggests that venture businesses are more actively involved in technology development activities than other business groups.

(Sales) In 2022, venture businesses had total sales of KRW 211 trillion, ranking fourth in the business community. The average sales amounted to KRW 6.5 billion, reflecting a YoY increase of KRW 250 million.

LEE Eun-cheong, Director General for Venture Policy at the MSS, stated, “In February 2021, MSS restructured the verification system for private sector-led venture businesses. During the restructuring, evaluation criteria shifted from guarantees and loans to focus on assessing innovativeness and growth potential. While the number of venture capital companies may have decreased temporarily, this reorganization aims to select only the most innovative and technologically advanced companies as venture businesses.”