“The government will increase the amount of startup funds available for young entrepreneurs and angel investment fund to KRW 760 billion, and also put KRW 200 billion together with global venture capital companies into a new fund similar to Israel’s Yozma Fund, to help Korean startups,” President Park Geun-hye said during her public announcement speech on her Three Year Plan for Economic Innovation. Financially supporting startups and venture companies is one of the key ideas of ‘Creative Economy’ and ‘Creative Finance’ which President Park pledged to achieve during the presidential election campaign.
In a highly competitive global market, there is a limit for Korea to thrive by depending on export and manufacturing. Providing adequate financial support to young entrepreneurs with innovative ideas will encourage more innovative companies to develop new creative technologies, and create a new momentum for further economic development.
To such backdrop, the reform plan President Park brought about is a very timely and appropriate one compared to Japan’s controversial economic plan, Abenomics, according to a renowned Bloomberg columnist William Pesek. In his article titled ‘South Korea’s Widly Plausible Growth Plan’, he highly praised President Park’s economic plan saying that “her ambitions are a welcome sign that reform in Asia isn’t dead.” “Her 474 vision is more plausible than many pundits, business people and even her own policy makers seem to think,” he wrote.