Government Subsidies Ruin Venture SpiritAccording to one newspaper report, a high-ranking government official described the current venture policy as the following: "We aim to benefit all comapnies ... and focus on subsidizing core ventures, selected by a comprehensive panel of experts."
They've got to be kidding. If this is not a bad joke, it is a good example of the stodgy, pre-IMF mindset of many government officials.
Ironically, government-ruled financial policy, a major cause of the 1997 economic crisis, is on the rise yet again.
Thanks to intensive government intervention in financial markets, a majority of financial institutions are state-owned. Such meddling in the past, with large and small companies alike, show no signs of receding.
The term 'venture capital' marks the beginning of a new order, springing from new ideas, capital, and personnel, that bring out creativity and revolution - without government intervention and subsidization.
Silicon Valley, the core of venture firms in America, was not created with the help of the U.S. government. The internationally competitive strength of Taiwan's middle- and small-sized companies lies in the government's non-intervention policy.
In the past, the government of South Korea had a bad habit of pouring funds into needy companies and farms, hoping, in time, they would stand on their own two feet.
The recent enthusiasm for venture firms is an opportunity for Korea's economy to move away from this government intervention. It is a chance for Korean markets to work on market principles.
'Venture Spirit' is a new paradigm and a mindset that is ready to explore new markets and new products on one's own strength and innovations.
There should no longer be a government policy that concentrates on raising particular industries or enterprises. Policies toward the venture industry should be limited to certain areas, such as securing infrastructure, improving current laws and systems, and educating manpower. The government taxation policy should remain neutral for companies big and small, as well as for existing telecommunication companies. The best economic policy is no policy at all. Direct sponsoring of venture companies will only ruin the heart of the innovative spirit.