TLDR:
– The Ministry of SMEs and Startups released a report showing a historic surge in South Korea’s venture investment in 2023.
– Private research organizations like Startup Alliance report a significant decrease in venture investment, sparking debates over data accuracy.
A recent announcement by the Ministry of SMEs and Startups on the ‘2023 domestic venture investment and fund formation trends’ has ignited intense scrutiny over the accuracy of South Korea’s venture capital (VC) market statistics. While the government heralds remarkable growth and recovery, private research organizations paint a contrasting picture, sparking debates over the data collection methodology. The Ministry’s report asserts that domestic venture investment surged to a historic KRW 10.9 trillion (USD 8.18 billion) in 2023, marking a 35% increase from the pre-COVID-19 peak of KRW 8.1 trillion (USD 6 billion) in 2020. However, Startup Alliance reports a staggering 52% decrease in venture investment, estimating the figure at KRW 5.3 trillion (USD 3.9 billion) for the same period, highlighting the divergence in counting methodologies between government and private agencies.
