Case Study on the Role of Corporate Venture Capital: Platform Kakao and Cryptocurrency Exchange Upbit

The digital revolution, represented by the Fourth Industrial Revolution, is rapidly changing the industrial environment. To respond to these changes, global IT companies strategically invest in startups with innovative ideas through corporate venture capital (CVC) to secure future competitiveness. Most previous studies related to CVC have been empirical studies targeting the Silicon Valley. However, CVC is gradually spreading globally, and the proportion of total CVCs in Asia is rising rapidly. In particular, the method of preparing for digital transformation (DT) differs by country, and the functions and roles of CVCs differ. This study analyzed the role of CVC and their financial and strategic benefits through the case of Kakao Ventures, a representative CVC in Korea. The study also analyzed the effect of CVC investments on the growth of venture companies. Therefore, as we discuss issues related to CVC activation in Korea, the current research can be used as a reference material for policymakers and related practitioners.