South Korea to unveil measures to boost venture companies

Seoul, May 8 (IANS) South Korea planned to unveil a set of measures to boost venture companies in a bid to help them create jobs and bolster economic growth, the nation’s top economic policymaker said Wednesday.

“(The government) planned to draw up diverse policy measures to create ecosystem for venture companies that can induce venture capital and cause brisk business startups,” Finance Minister Hyun Oh-seok said at a meeting in Seoul with heads of small startups.

Hyun noted that the government launched various stimulus measures such as property market-boosting measures, supplementary budget and investment-stimulating plans, saying that the next step would be focused on startup businesses that will lead the creative economy, reported Xinhua.

The South Korean government under President Park Geun-hye has been seeking to create jobs through the so-called “creative economy” where information and communications technology (ICT) will be applied to all industrial sectors.

The government anticipated the convergence between ICT and industries would create new types of jobs, while predicting brisk startups of venture companies would serve to boost economic growth and job creation.

Hyun said various measures such as financial support and tax benefits would be offered to venture firms in a bid to expand venture capital that invest in startup businesses, noting that the so-called KONEX will be launched to enhance access of venture firms to the capital market.

The Korea New Exchange (KONEX) was planned to be launched within this year to provide better access to the equity capital market for startups and growth companies. Here in Seoul, small firms relied heavily on bank loans to raise funds necessary for investment and operation, increasing burden for interest payment.

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