Korean Government's Venture Capital Supporting Policies And Its Inspiration To China

Since the n1otion on Venture CaPitaI development proposed by the NationalPolitical ConsuItative Conference in l998, Venture CaPital gradually genefated theil1terest of every section of the society. Ventate CaPital is an importam motive forcein the development of high and new technology and the uPgrading of the industrialstructure, and it is very iInportan in the transfer of the scientific results. China'sresearch into Venture CaPital mainly focused on the advanced countries such as theUSA, we have few research results on the Venture Capital in Korea. Korea is atypical country to deve1op Venture Capital by the government, the research iflto thedevelopInent Korca's \Ienture CaPital has a certain significance for China. ln thisarticle, from the view of the govemment, the author outlines details of Koreangovemment's supporting policies fOr the development of Venture CaPital. Speakingat the same tilne about some problems arising from China's support for the VentureCapitals, the author proposes several valuable suggestions.First, tlle author describes the reIevant theories on Venture Capital, carries out the necessarycIassification and sun1marizes tl1e deveIopment process and the theoretical background forVenture Capital, including the introduction of risky invesment's concept and characteristics, thenecessity for the development of Venture Capital, the ec6nomic interpretation td the VentureCapital, the development of Venture Capital etc. Second, the author introduces and analyses thepolicies of Venture Capital supported by the Koreal1 government, points out the advantages anddisadvantages of various government supportive policies for Venture Capital. This includes thehistory of Korea's Venture Capital, the present state of the Venture Capital enterPrises, Koreangovernment's supportive policies for Venture Capitals, as regards capital, land, the relevantlegislation al1d the cancellation system etc, and the problems linked to the Korean govemment'ssupporting policies. Final1y, combining the above with the present situation of China, and theprobIems arising from China's support for Venture CapitaI, the author discusses some valuableexperience and lessons. This mainly includes the history of China's Venture CaPita1, thegovernment's function in the development of Venture Capital, the efficiency of use of stateinvestment, the establishment of the risky invesment's cancellation system, formation of theVenture Capital, and a discussion of how tO improve the management Venture Capital etc.Venture Capital is a new phenomena, its development has not been without uPsets.IIBut, in order to enhance China's comprehensive strength, to develop the national economy, it is necessary to enhance our country's scientific and technological level through the development of the Venture Capital. But the development of the Venture Capital can not be separated from the support of the government. So, it is of great significance to learn from the experience of other countries, and avoid their mistakes in our future work.