"After 10 Years, the Venture Ecosystem Changes Too"... Shifting from Manufacturing to Service Industry

[Financial News] The domestic venture business industrial structure has rapidly shifted from a manufacturing-centered to an IT and software-based service industry over the past 10 years. The proportion of high-tech industries has also surpassed general industries, indicating a transition to a high value-added technology-based structure across the industry.
The Venture Business Association published the 'Venture Business Industrial Structure Change Analysis' report on the 24th, summarizing the changes in industrial structure from 2014 to 2024 into 10 characteristics.
According to the report, the total number of venture businesses increased from 24,636 in 2014 to 35,857 in 2024, with an average annual growth rate of 3.8%. Among them, the number of service industry venture businesses grew at an average annual rate of 7.4%, more than doubling, while manufacturing increased by only 1.6%. The proportion of manufacturing decreased from 67.6% to 54.5% during the same period, while the service industry increased from 30.3% to 42.6%.
The transition to a high-tech industry-centered structure was also notable. Since 2021, the number of high-tech industries within venture businesses has surpassed general industries. It is interpreted that the venture ecosystem is focusing on high-tech and high value-added fields. Over the past 10 years, high-tech industry venture businesses increased by an average of 4.0% annually, while general industries increased by 3.4%.
By industry, 12 sectors, including research and development services, wholesale and retail, and software development, showed an expansion trend. In particular, research and development services recorded the highest growth rate, increasing by an average of 19.1% annually. On the other hand, 13 sectors, including computers, semiconductors, and automobiles, contracted.
Regionally, the concentration in the capital area is accelerating. As of 2024, 66.7% of all venture businesses are located in the capital area, with the average annual growth rates of Seoul (5.7%), Incheon (4.3%), and Gyeonggi (3.9%) exceeding the national average (3.8%).
Changes in the regional industrial structure are also being detected. In 10 out of 17 cities and provinces, the top industries have shifted from manufacturing to service industries, and in four regions (Busan, Daegu, Gwangju, Sejong), software development has newly risen to the top.
Additionally, the capital area is specializing in service industries such as broadcasting services and IT-based services, while non-capital areas are specializing in manufacturing industries such as machinery and automobiles, showing regional industry differences.
Song Byeong-jun, Chairman of the Venture Business Association, said, "Venture businesses are specialized in technology-based industries and have established themselves as a core growth axis of our economy, but current policies still remain in the past framework," adding, "Flexible regulations and support systems tailored to changes in the industrial environment are needed."

jimnn@fnnews.com Shin Ji-min Reporter