Over the last few years, Internal Corporate Ventures (ICVs) have been booming among Korean telecommunication companies. This trend began shortly after venture business firms were flooding the Korean peninsula. Largely, ICVs are launched because they are very helpful for the mother companies to acquire profits and synergy effects among their organizations. On the other hand, an intrapreneur can make use of many support programs assisted by his/her mother company. This study was done for the purpose of outlining the general phenomena regarding ICVs and suggesting some desirable directions for improvement.
The major contents of this thesis are follows. First, there is a literature review on ICVs. This is followed by a case study of major telecommunication carriers including wired & wireless companies in Korea. Third, there is an analysis of the general features of ICVs in telecommunication companies. Finally, the benefits and future tasks for ICV, their mother company, and government. The major parts of this thesis were made by analyzing questionnaires collected from ICV CEOs or their assistants.
According to the result of this empirical study, several suggestions are made to the ICVs, their mother companies, and government. To successfully achieve their goals, the ICV CEOs have to manage their firms transparently and prevent them from becoming involved in moral hazard situations. Besides, they need to have a harmonized business strategy with their mother company, practice high-tech marketing skills, and establish a risk forecasting device. The mother companies need to propagate and enliven the system, maintain effective investment strategy, and add items from the outside. Government involvement is desired to enlarge the assistance program, administer the financial market soundly, enlarge special preferences for ICVs, and ensure that ministries cooperate with each other and practice consistent ICV policies.
