University Technology Holding Companies, Subsidiaries' Mandatory Shareholding Exemption Period Extended to 10 Years
If the 20% Mandatory Holding Ratio Is Not Met
Grace Period Extended from Current 5 Years
[Asia Economy Reporter Hyunju Lee] The mandatory stock holding exemption period for subsidiaries of university technology holding companies will be extended from 5 years to 10 years.
The Ministry of Education announced on the 22nd that the revision bill of the "Enforcement Decree of the Act on the Promotion of Industrial Education and Industry-Academia-Research Cooperation (Industry-Academia Cooperation Act)" containing this content was reviewed and approved at the Cabinet meeting. University technology holding companies are established by university industry-academia cooperation foundations investing cash and in-kind contributions. They are dedicated organizations for technology commercialization, including technology transfer and subsidiary establishment and operation. Technology holding companies are required to hold 20% of the subsidiary's shares, but there are cases where the shareholding ratio is temporarily not met. This occurs when a subsidiary suddenly grows, and the current grace period for this is 5 years.
Going forward, the grace period will be extended to 10 years. Considering that it generally takes more than 10 years for small and venture companies to be listed on KOSDAQ, this extension allows technology holding companies to reduce the burden of capital increase due to the subsidiary's growth and to support the subsidiary stably during that period.
Hot Picks Today
Taking Annual Leave and Adding "Strike" to Profiles, "It Feels Like Samsung Has Collapsed"... Unsettled Internal Atmosphere
- There Is a Distinct Age When Physical Abilities Decline Rapidly... From What Age Do Strength and Endurance Drop?
- "One Comment Could Lead to a Report": 86% of Elementary Teachers Feel Anxious; Half Consider Resignation or Career Change
- "After Vowing to Become No. 1 Globally, Sudden Policy Brake Puts Companies’ Massive Investments at Risk"
- On Teacher's Day, a Student's Gifted Cake Had to Be Cut into 32 Pieces... Why?
Additionally, the personnel securing criteria among the approval requirements for establishing university technology holding companies will be specified as "personnel dedicated on a regular basis," and from now on, the activities of technology holding companies and subsidiaries will be newly included in the statistics compilation targets for industry-academia-research cooperation relationships. This revision bill will be promulgated and enforced immediately after passing the Cabinet meeting.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
