Minister Lee Young of the Ministry of SMEs and Startups Holds Meeting with Venture Investment Industry... "Considering Formation of Private Mother Fund"

Minister Lee Young Listens to Venture Investment Industry's Difficulties and Suggestions on the 3rd
Implementing a Global and Startup Ecosystem, Creating Private Mother Funds, etc.
"Will Support Venture Investment Industry's Investment Activities with Policies"

Lee Young, Minister of SMEs and Startups

[Asia Economy Reporter Kwak Min-jae] On the 3rd, Lee Young, Minister of the Ministry of SMEs and Startups, held a meeting with venture investment industry officials at the Korea Venture Investment conference room in Seocho-gu, Seoul to discuss revitalizing venture investment.

This meeting was organized to listen to the difficulties and suggestions of the venture investment industry amid concerns of contraction in the venture investment market due to the recent 'three highs (高)' crisis of high inflation, high interest rates, and high exchange rates, and to reflect them in future venture and startup policies.

In his opening remarks, Minister Lee emphasized, "The achievement of surpassing 4 trillion won for the first time in venture investment amount and fund formation in the first half of the year is an encouraging result cultivated by the venture and startup ecosystem so far." He added, "Due to the recent global decline in investment sentiment, there are concerns about the continuous growth of the domestic venture and startup ecosystem, so we must overcome this crisis and create an opportunity to leap forward."

Venture investment industry officials attending the meeting shared on-site difficulties. While requesting the government to prepare solutions, they also proposed various opinions for fostering a progressive venture and startup ecosystem. They also actively requested consideration of new sources of investment funds such as private mother funds amid the recent global economic crisis.

Concerns were also raised about the market situation where trustee institutions managing fund money refuse to accept trusteeship of venture investment associations or, even if they do, enter into trustee contracts with terms unfavorable to the association operators. Considering the increasing necessity for M&A and restructuring due to high interest rates and economic recession, the need for the currently small-scale 'SME Venture-exclusive M&A funds' to grow larger was also mentioned.

Minister Lee stated, "To overcome difficult domestic and international economic conditions, bold and active investment by the venture investment industry in venture and startup companies despite uncertainties and risks is important," and added, "The government also plans to prepare policies that can firmly support the investment activities of the venture investment industry, such as establishing support measures for realizing a global startup and venture ecosystem and building a foundation for private mother fund formation."

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