AN EVALUATION OF THE VENTURE BUSINESS PROMOTION POLICY OF KOREA

The purposes of this research are threefold. The first is to evaluate effectiveness of the measures of the venture promotion policy in Korea. The second is evaluate the degree to which causes of failures of the venture promotion policy. The last is to estimate overall success score of the venture promotion policy. This study uses the method of sample survey in which respondents are 127 counsellors of the Korea Small Business Development Centers. The policy measures whose effectiveness we are going to study include (1) Business Incubators, (2) KOSDAQ, (3) Tax Reduction, (4) Venture Capital, (5) Education and Training, (6) Lab-based Factory, (7) Credit Guarantee, (8) Exemption from Military Service, (9) Angel Capital, and (10) Venture Designation. On the other hand, potential causes of failures of the venture business policy studied in this paper include (1) Inappropriate Design of the Policy, (2) Irrational Promotion by Korean Government, (3) Incapacity of Government Officials, (4) Corruption, (5) Unfair Designation of Venture, (6) Inappropriate Policy Measure, (7) Low Level of Technology. Finally, the estimate of the success score of Korea's venture business policy turned out to be 5.0732 (< the median value 5.5) over the range of 10 (perfect success) and one (total failure). Thus, since this estimate value of 5.0732 is less than the median value 5.5, it may be interpreted to indicate a failure of Korea's venture business policy.