1. The Current State of Business Incubation in Korea MAY 23, 2000 HONG KIM. Dean, Graduate School of Venture Hoseo University Director, Hoseo Technology Business Incubator, KOREA

2. New Paradigm for 21Century Industrial Society Knowledge & Information Society - China & other developing Countries - USA & Israel etc Venture Startups

3. Plan of venture startups in Korea Venture companies 5,000 Venture companies 6,400 Venture companies 43,000 80,000 Enterprises 100,000 Enterprises 120,000 Enterprises 1999 Year2000 Year2005 Year

4. Fig.1 Business Incubation in Korea

5. Fig.2 Annual Distribution of Business Incubator in SMBA In operated

6. Fig.3 Regional Distribution of Business Incubators In operation

7. Fig.4 Distribution of Operators for Business Incubation In operation Institute

8. Fig.5 Current Status of Business Incubators in Operation

9. Fig. 6 Distribution of Number of Entrepreneurial Companies in Business Incubator No of Companies

10. Fig. 7 Distribution of Monthly Rent for Business Space ($/m2)

11. Fig. 8 Classification of Entrepreneurial Companies in Business Incubators Manufacturing

12. Fig. 9 Ratios of different entrepreneurial companies in Manufacturing Sector environment Electronics

13. Fig. 10 Ratios of Different Entrepreneurial Companies in Business Incubators enterprises

14. Fig. 11 Ages of Executive Officers in Entrepreneurial Companies

15. Fig. 12 Employment Status of Entrepreneurial Companies

16. Fig. 13 Current Sales Volume of Business Incubator

17. Fig. 14 Ratio of representatives with different academic background undergraduate Graduate from

18. Fig. 15 The graduated entrepreneurial companies of each business incubator

19. Fig. 16 Staff of business incubators

20. I S S U E S Lack of business supports for Entrepreneurial companies. Lack of responsible professional resources for business incubators. Difficulties in funding operational expenses for the initial period of business incubator operation. The difficulties of entrepreneurial companies in funding.

21. PROPOSED IDEAS Financial aid for business Incubator from government. Professionalization of incubator staff. Development of Korea-style management model for business incubation. Establishments of doctor incubation system and exterior consultation system for entrepreneurial companies. Financial support for entrepreneurial companies and strategic tie-up with investment organizations.