Medium company with KRW 300 billion considered as ‘Venture company’… ‘Peter Pan’ syndrome to be removed
Park Jong Jin | truth@ | 2018-02-01 10:47:12
The Korean government is expected to make fundamental changes in the domestic venture ecosystem by restructuring venture businesses, size restrictions and industry regulations. In particular, the direction and details of venture business support policy will be greatly changed by breaking the equation of `venture company = small and medium enterprise` and including KRW 300 billion early mid-sized enterprise into venture enterprise.
The Small Venture Business Division, on January 31, announced that the venture ecosystem innovation measures centered on the private sector included venture companies that were limited to small and medium enterprises to include initial mid-sized companies with sales of less than KRW 300 billion. Meanwhile, as companies grew into a midsize company, they had to experience sudden interruptions in government support and cuts in regulations. This is why the `Peter Pan syndrome`, which refuses to grow, is prevalent among companies. It is expected that these side effects will be reduced by incorporating mid-sized companies into venture support targets. However, the venture`s tax exemption and financial support are limited to small and medium-sized enterprises, so it is an assessment that the equity by size has been matched.
It is expected that the competitiveness of venture verification companies will increase as the venture certification is changed from government-led to private-sector-oriented.
Kim Ki-chan, a professor at the Catholic University of Korea, said, "The evaluation criteria are stricter because private investment is based on profitability and business performance of companies." If the subject of venture confirmation turns into a private expert, it will be issued based on growth potential and innovation. .
In the case of beauty, rental, golf course, bathing, etc., which are 23 existing, the traditional industry is classified as a venture if it provides new concept services by combining new technologies such as artificial intelligence (AI) and internet of Things (IoT) to ensure diversity. However, five entertainment industries such as liquor stores and unpainted areas are continuously regulated to prevent the growth of gambling businesses.
"If the service meets the criteria of growth, innovation, and research and development," said Seok Jong-hoon, founder of the Venture Innovation Chief, Sejong Hoon, "it is necessary to open up new ventures at the company level rather than regulate them for problems that may arise. I will open it only to you, "he said.
The medium-term plan is to first revamp venture-related systems such as venture capital, venture capital investment, and mutual funds, and then to promote all-round innovation for the entire venture ecosystem.
"Regulatory reform is necessary. However, it is not easy to get involved in the interests of the existing industry," said Seok. "We will start to fix the regulations with little or no interest, and we will look for models that can stimulate new industries."
Meanwhile, concerns were raised about whether to create a venture ecosystem centered on the private sector by simply increasing the number of venture companies, or whether there is a plan to prevent the moral hazards of the venture confirmation committee, which will be composed of civilian experts. . Lee Jung-hee, a professor at Chung-Ang University, said, "I agree with the plan to leave it to the private sector, but we must make sure that everyone can agree on the verification standards and provide quality assurance." The committee plans to prevent illegal alienation and the committee should be formed by experts who can be recognized by the majority. "
It also raised the need for additional policies to increase entrepreneurship as the announcement focuses on benefiting existing companies and expanding the base of venture firms rather than revitalizing them.
Park Cheol-woo, a professor at the Korea Institute of Industrial Technology, stated, "It is a policy to show willingness to improve the venture ecosystem but in order for many good venture companies to be born in the end.
By Park Jong Jin truth@
[ copyright ⓒ The Digitaltimes ]
The Small Venture Business Division, on January 31, announced that the venture ecosystem innovation measures centered on the private sector included venture companies that were limited to small and medium enterprises to include initial mid-sized companies with sales of less than KRW 300 billion. Meanwhile, as companies grew into a midsize company, they had to experience sudden interruptions in government support and cuts in regulations. This is why the `Peter Pan syndrome`, which refuses to grow, is prevalent among companies. It is expected that these side effects will be reduced by incorporating mid-sized companies into venture support targets. However, the venture`s tax exemption and financial support are limited to small and medium-sized enterprises, so it is an assessment that the equity by size has been matched.
It is expected that the competitiveness of venture verification companies will increase as the venture certification is changed from government-led to private-sector-oriented.
Kim Ki-chan, a professor at the Catholic University of Korea, said, "The evaluation criteria are stricter because private investment is based on profitability and business performance of companies." If the subject of venture confirmation turns into a private expert, it will be issued based on growth potential and innovation. .
In the case of beauty, rental, golf course, bathing, etc., which are 23 existing, the traditional industry is classified as a venture if it provides new concept services by combining new technologies such as artificial intelligence (AI) and internet of Things (IoT) to ensure diversity. However, five entertainment industries such as liquor stores and unpainted areas are continuously regulated to prevent the growth of gambling businesses.
"If the service meets the criteria of growth, innovation, and research and development," said Seok Jong-hoon, founder of the Venture Innovation Chief, Sejong Hoon, "it is necessary to open up new ventures at the company level rather than regulate them for problems that may arise. I will open it only to you, "he said.
The medium-term plan is to first revamp venture-related systems such as venture capital, venture capital investment, and mutual funds, and then to promote all-round innovation for the entire venture ecosystem.
"Regulatory reform is necessary. However, it is not easy to get involved in the interests of the existing industry," said Seok. "We will start to fix the regulations with little or no interest, and we will look for models that can stimulate new industries."
Meanwhile, concerns were raised about whether to create a venture ecosystem centered on the private sector by simply increasing the number of venture companies, or whether there is a plan to prevent the moral hazards of the venture confirmation committee, which will be composed of civilian experts. . Lee Jung-hee, a professor at Chung-Ang University, said, "I agree with the plan to leave it to the private sector, but we must make sure that everyone can agree on the verification standards and provide quality assurance." The committee plans to prevent illegal alienation and the committee should be formed by experts who can be recognized by the majority. "
It also raised the need for additional policies to increase entrepreneurship as the announcement focuses on benefiting existing companies and expanding the base of venture firms rather than revitalizing them.
Park Cheol-woo, a professor at the Korea Institute of Industrial Technology, stated, "It is a policy to show willingness to improve the venture ecosystem but in order for many good venture companies to be born in the end.
By Park Jong Jin truth@