Venture companies began to proliferate after the enactment of the Special Measures on the Promotion of Venture Business in August 1997. Since then they played a critical role in the Korean economy as an engine of growth and a platform creating job opportunities. Collecting and analyzing data on venture companies, this study investigates the evolution, effectiveness,and problem of the venture company certification policy and proposes measures for improvement. Approximately 20,000 firms have been certified as venture companies so far. Certification categories include (1) firms funded by venture capital, (2) firms with heavy R&D investment,and (3) firms sponsored by either Korea Technology Finance Corporation or Small and Medium Business Corporation. Among the three, the number of firms belonging to the last category,which was introduced in 2006, has significantly increased. Despite the wide acceptance of the certification program, its effectiveness as a mechanism for disseminating information about venture companies has been criticized because it fails to provide measures specific to venture companies based on their characteristics, development stage, and performance. Empirical investigation on the limits of the current program suggests that some measures need to be seriously considered in order to achieve the following two objectives of government support for venture companies: (1) creating the ecosystem for venture companies so that the market for venture companies and capital functions properly, and (2) enhancing the Korean economy through government support directed toward venture companies with high potential and/or superior technology.