Designated as a Private Venture Verification Agency: 'Venture Business Association'

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Park Young-sun, hereinafter referred to as the Ministry) announced on the 25th that it has designated the Korea Venture Business Association as a private venture verification institution. This follows the revision of the "Special Measures for the Promotion of Venture Businesses Act" (hereinafter referred to as the Venture Business Act), which reflects changes to the private-led venture business verification system, and ahead of the full implementation of the new system in February 2021, the Ministry has designated a private institution to operate it.

So far, the venture business verification system has been dominated by guarantee and loan types verified by the Korea Technology Finance Corporation and the Small and Medium Business Corporation, raising continuous concerns about limitations in selecting truly innovative venture companies. With this designation, the venture business verification system will be newly transformed from February next year, centering on private experts.

Accordingly, the existing venture business verification system operated by public institutions will be maintained only until February 11, 2021, after which the verification will be conducted by the Korea Venture Business Association, designated as the private venture verification institution. During the remaining period before implementation, preparations such as building IT systems and trial operations will be conducted to ensure stable operation of the revised system.

The Ministry announced the recruitment of venture verification institutions on May 20, shortly after the revision of the "Enforcement Decree of the Venture Business Act," which contains the designation requirements, and accepted applications until June 9. The Ministry reviewed the designation requirements for the applicants and held a "Venture Verification Institution Selection Committee" involving experts related to the venture ecosystem to examine the appropriateness of the applicants' performance, ultimately designating the Korea Venture Business Association.

The designated Korea Venture Business Association will serve as the venture verification institution for three years, including the preparatory period, according to Article 9 of the "Enforcement Rules of the Venture Business Act." Additionally, the Ministry plans to establish institutional measures and conduct trial operations in the second half of this year to promote the revamped system, including the formation of the "Venture Business Verification Committee," design of evaluation models, and construction of IT business systems, in cooperation with the Korea Venture Business Association.

Lee Ok-hyung, Director of the Venture Innovation Policy Division at the Ministry, said, "The designation of the venture verification institution marks the groundbreaking start of the private-led venture verification system. We will work together with the designated Korea Venture Business Association to ensure the early settlement and stable operation of the new system."

This content was produced with the assistance of AI translation services.