Venture capital
lastmod 2025-08-26created 2025-08-264 edits
Venture capital (VC) is financial capital that funds promising venture companies and provides comprehensive support such as management and technical guidance, seeking high capital gains. It mainly targets early-stage venture companies with strong technology but lacking know-how in management or sales.
Venture capital also contributes to job creation, accounting for as much as 2% of US GDP.
Current state in South Korea
Venture capital in South Korea is currently divided into two main types: small and medium business startup investment companies (changtusa) and new technology business financing companies.
Startup investment companies (changtusa)
Investment companies that, under the Support for Small and Medium Enterprise Establishment Act, invest directly, within 50% of their paid-in capital, in small and medium enterprises that are preparing to start up or that have strong technology but weak capital. Small and medium business startup investment companies provide long-term funding to small and medium enterprises within 14 years of the incorporation registration date for corporations, or within 10 years of the business commencement date for sole proprietors, in forms such as acquiring shares, acquiring convertible bonds or bonds with warrants, contractual investment, and acquisition investment. Where needed, they also provide professional support systems such as management guidance and technical support.
New technology business financing companies (singisa)
Companies that, under the Act on Financial Support for New Technology Businesses, provide investment and loans as well as management and technical guidance to new technology businesses (small and medium enterprises that develop technology or commercialize it through application). Though it varies slightly by company, their main business is investment and loans to support corporate technology development, commercialization of technology, process improvement, and the like, with particular focus on supporting startups and technology development of small and medium enterprises.
Major startup investment companies
LB Investment, SBI Investment, DSC Investment, Mirae Asset Venture Investment, STIC Investments, Atinum Investment, Coolidge Corner Investment, Korea Investment Partners, The Wells Investment, CJ Venture Investment, Daesung Venture Investment, Lighthouse Combined Invest, Lindeman Asia Investment, Bokwang Investment, SoftBank Ventures, Stonebridge Capital, Seoul Investment Partners, Aju IB Investment, IMM Investment, ES Investor, Intervest, Ilshin Venture Investment, Wonik Investment Partners, Zion Investment, Company K Partners, KB Investment, Kakao Ventures, Kiwoom Investment, Partners Investment, POSCO Technology Investment, Platinum Technology Investment, Hyundai Technology Investment, SL Investment, SV Investment, A Ventures, We Ventures, etc.
See also
- Angel investor
- Seed money
- Korean: 투자 (Investment)