It was found that 617 companies (as of the end of 2019) had ‘100 billion venture companies’ with annual sales exceeding 100 billion won. The total sales of these companies was estimated at 140 trillion won.
The Ministry of SMEs and Startups announced the results of the ‘2020 Venture 100 Billion Companies Survey’ on the 25th.
The total sales of 100 billion venture companies was estimated to be about 140 trillion won, an increase of 6,182.4 billion won (4.6%) from the previous year. It ranks fourth in the business world, following SK. The number of newly entered companies with sales of 100 billion won for the first time was counted as 62.
The average period for these companies to achieve sales of 100 billion won was 17.5 years. The average period for software development and IT-based service companies to achieve sales of 100 billion won was the shortest at 11.7 years.
Venture 100 billion companies also outperformed large, medium, and small companies in terms of management performance. The net profit margin (net profit/sales) of venture firms was 5.9% on average, 1.9 times that of large companies (3.1%) and 2.7 times that of SMEs (2.2%). The average sales of 100 billion venture companies fell slightly (0.4%) compared to the previous year, but the decline was lower than that of large companies (7.2%) and mid-sized companies (5.8%).
The total number of employees of 100 billion venture companies was 23.2 million, an increase of 6,000 from the previous year, ranking second in the business world. The average number of employees per company was 382, down 2.3% from the previous year.
The ratio of R&D to sales of 100 billion venture companies was on average 2.8%, higher than that of large companies (1.7%) and small and medium-sized companies (0.7%). The proportion of companies that received venture investment from the start of business to the end of 2019 was 40.3% (244), and the total investment attraction amount of the invested companies was estimated at about KRW 1 trillion. The average investment amount of 244 companies that received investment is 7.6 billion won, which is three times the average amount of venture investment per company of 2.7 billion won in 2019.
Park Yong-soon, director of venture innovation policy at the Ministry of Strategy and Finance, said, “As a result of this survey of 100 billion venture companies, we confirmed that 100 billion venture companies are playing a supporting role in Korea’s economy in creating new jobs and sales.” “Startups will focus on creating a startup venture ecosystem that can grow into 100 billion venture companies and unicorn companies.”
Reporter Kim Dong-hyun [email protected]
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