Yeonbae Kim (corresponding author): Technology Management, Economics and Policy Program, College of Engineering, Seoul National University, 599 Gwanak-ro, Gwanak-gu 151-742, Seoul, Korea. Email: firstname.lastname@example.org. Younghoon Kim: Economic Research Institute, Industrial Bank of Korea, 50, 2-ga, Ulchi-ro, Chung-gu 100-758, Seoul, Korea. Email: email@example.com. Lee: Technology Management, Economics and Policy Program, College of Engineering, Seoul National University, 599 Gwanak-ro, Gwanak-gu 151-742, Seoul, Korea. Email: firstname.lastname@example.org.
Corporate Venture Capital and Its Contribution to Intermediate Goods Firms in South Korea*
Article first published online: 7 SEP 2011
© 2011 The Authors. Asian Economic Journal © 2011 East Asian Economic Association and Blackwell Publishing Pty Ltd
Asian Economic Journal
Volume 25, Issue 3, pages 309–329, September 2011
How to Cite
Kim, Y., Kim, Y. and Lee, J.-D. (2011), Corporate Venture Capital and Its Contribution to Intermediate Goods Firms in South Korea. Asian Economic Journal, 25: 309–329. doi: 10.1111/j.1467-8381.2011.02064.x
- Issue published online: 7 SEP 2011
- Article first published online: 7 SEP 2011
- Received 9 March 2010; Accepted 30 June 2011
- corporate venture capital;
- intermediate goods firm;
- financial sources;
- vertical value-chain linkage
Set by government, corporate, financial and individual sources, venture capitalists in Korea have adapted themselves to the new and uncertain venture capital market through stand-alone and syndicated investments. The present study raises questions about whether various financial sources contributed differentially to their portfolio firms during the market boom of 2000. Results show that no single capital source showed better performance, and only corporate venture capitalists contributed to intermediate goods firms. The latter finding might reflect the unique ability of corporate venture capitalists to use vertical value-chain linkages for their investments.