Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/219393
Authors: 
Schüler, Diana
Suhalitca, Mihaela
Pascha, Werner
Oh, Keun-yeob
Year of Publication: 
2020
Series/Report no.: 
Working Papers on East Asian Studies No. 127/2020
Abstract: 
The paper discusses the role of government policies and related support services in the formation of start-up businesses in South Korea. Start-ups can infuse an economy with renewed vigor, but it is questionable how Korea, an economy that has been dependent on a few large conglomerates in the past, can successfully encourage such start-up dynamism. The paper traces the economic history of start-ups and venture businesses in Korea and highlights its current situation. The analysis then focusses on explaining the start-up support policies, both on the level of central government and of the regions, paying attention to the intertwined role of the venture capital industry. A number of major obstacles are identified, in particular the ambiguous effects of social networks, the widespread risk aversion among potential entrepreneurs, the shortage of exit opportunities and the pronounced regional imbalances. The authors conclude that financial support measures should be streamlined, that the state should focus on creating appropriate framework conditions and that the regions should be given more independence from central government to choose their own path of development.
Subjects: 
South Korea
start-ups
start-up government policy
regional economic policy
venture capital industry
JEL: 
M13
L26
L53
O38
R11
Document Type: 
Working Paper

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