Title: Dynamics of governmental financial support for Korean venture firms: an empirical perspective

Authors: Taegi Kim; Yancheng Li; Weilong Zhang; Keunyeob Oh

Addresses: Division of Economics, Chonnam National University, Kwangju City, 61185, South Korea ' Department of International Trade, Chungnam National University, Daejeon City, 34134, South Korea ' Department of International Trade, Chungnam National University, Daejeon City, 34134, South Korea ' Department of International Trade, Chungnam National University, Daejeon City, 34134, South Korea

Abstract: Venture firms often struggle with financing, making government financial support policies essential. This study conducted a panel data regression analysis using data from Korean venture companies from 2016 to 2021 to examine the impact of various financial support programs, including R&D funding, loans, and guarantees. The findings are as follows. First, government financial support positively influenced all performance indicators, including sales, intellectual property (IP) applications, and market share. Second, R&D support had a significant impact on IP applications and market share, while loan support positively affected market share. Guarantee support contributed to increased sales and market share but had no effect on IP applications. Third, the impact of R&D support on patent applications was more pronounced in the startup and early growth stages. Fourth, R&D-intensive firms benefited more from R&D support. Based on these findings, the study provided several policy implications.

Keywords: venture firm; Korea; government policy; R&D; loan; guarantee; sales; intellectual property; market share; startup.

DOI: 10.1504/JGBA.2024.149508

Journal for Global Business Advancement, 2024 Vol.17 No.1, pp.26 - 49

Received: 11 Jun 2025
Accepted: 24 Jun 2025
Published online: 04 Nov 2025 *

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