This paper traces the development of the Korean venture sector from the 1990s. It explains that the development of Korean venture sector was not just an outcome of the government's policy to bring up venture business. Rather it was the result of the restructuring efforts from the whole Korean economy sector that tried to survive throughout the 90s. The study points out three fundamental lessons from Korea's venture industry growth: 1) Government should plan when to reduce its role in the market, as the market grows. Sometimes it is helpful for the government to intervene when the market is not functioning effectively by itself but it also has to know to back out when it has done its role. This will lead to the respect for market function and for the enterprises to manage its business with predicting the future, 2) A desirable venture capitalist has to provide not only investment but also has to support human resources, business consulting and marketing using his professional knowledge and human network. To do this, he should invest in the areas with high potential to grow, and the areas that will allow him to utilize his knowledge, experience and know-how's most, and 3) Government should support the Research and Development of the areas which require the long term investment and has the publicity and the basic technology field.