ABSTRACT
This chapter reviews the institutional aspects of the venture capital industry and the IPO market and describes the trend of the Korean and other countries’ venture capital industry and IPO market in https://dot.com">dot.com bubble and bust period. It is shown that the Korean venture capital industry and IPO market have experienced dramatic remarkable growth since the late 1990s, which highlighted the private and public financing of high-tech oriented SMEs. Korea ranks the third in terms of venture capital investment as a share of GDP and the number of second-tier stock market-listed firms among the leading OECD countries in this period. The venture capital investment was shown to be concentrated in the expansion stage and high technology sector, which is similar to other countries. The growth of KOSDAQ is in line with that of other global second-tier stock markets that was followed by the ICT stock boom in the late 1990s. This sharp growth of Korean venture capital industry and the IPO market provides us with a peculiar setting for empirical study, especially in comparison with that of other countries.
