April 20, 2024

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Investments in startups reached a record-high 745 billion won ($641 million) in the first quarter of the year mainly on the back of the government’s ongoing efforts to nurture aspiring entrepreneurs, data showed on April 30.

The amount is up 16.9 percent from 638 billion won tallied a year earlier, according to the data from the Ministry of SMEs and Startups.

The stellar figure was due to the 4.7 trillion-won fund set up in 2017 for startup investments, which has spearheaded sharp growth, the ministry said.

The surge in venture investments is in line with the government‘s ongoing efforts to develop new growth engines and support smaller firms. President Moon Jae-in has vowed increased support for venture firms as the key driver of innovation and growth.

The ministry expects this year’s investments in total to reach 4 trillion won, far surpassing last year’s record high of 3.4 trillion won. It said 40 percent of the investments were made into companies between three and seven years old during the cited period.

By Ram Garikipati and newswires (ram@heraldcorp.com)