[Venture Biz 3] Living together, or collapsing together?

[Venture Biz 1] Some act like scams [Venture Biz 2] Moral crisis

Finally, the problems have been disclosed. But it is believed to be only a tip of an iceberg. The bribery scandal, involving those who have the power, is expected to continue.

Venture companies draw attention of many with the massive bribery scandal of Korea Digital Line president Chung Hyun-Joon, who offered a slush fund to high-ranking Financial Supervisory Service officials. Until recently, rumors about a honeymoon between venture companies and politicians spread. Now, it is found to be true.

Rumors openly spread that venture businessmen maintained close relationships with politicians. Some venture company executives even proudly said that a certain parliamentarian invested in their companies, while others have taken pictures with politicians to demonstrate their relations with them.

Recently, a venture businessman visited its U.S. partner, accompanied by a government official. It surprised his American partners. As long as such an attitude is maintained, it is unlikely that venture companies will realize a reform.

Until last year, Korean venture companies proclaimed so-called completion of an ecosystem. It was designed to overcome their difficulties through mutual cooperation and exchange of advantages and disadvantages with each other. But such a noble intention has changed into factional strife.

Also, internal struggles are a serious problem. Hong Sae-Won, president of Internet Circle, a consulting firm, said that company founders tend to fight over their ownership and sometime end up with dismantling of the company, noting that some of them are excessively selfish.

Industry experts indicate that venture companies must merge with each other and explore overseas markets to survive. An executive of Internetiz said that domestic companies stick to their own share too much so they used to fail in collaborating with foreign companies. An executive of Venture Life explained that target companies excessively stick to their ownership, so the proposed M&A used to tend to fail at the last minute.

"The survival of venture companies can be found from reflection of venture businessmen about their past wrongdoing,¡± Chung Moon-Soul, president of Mirae Corporation, said. ¡°It is urgent to restore the spirit of venture businessmen and corporate ethics."

Kim Jung-Gook, director of Dream Discovery, said that the road to venture business is rough but it was forgotten with overheated investment in venture companies. He stressed that venture businessmen should focus on technology development with challenging spirit, rather than concentrating on money games.

Cheon Kwang-Am iam@donga.com