VC Association and Others "Welcome Government's 'Plan to Create a Dynamic Venture Investment Ecosystem'"

Joint Statement by VC Association, Venture Business Association, Korea Women Venture Association, and Korea Startup Forum
"Hoping for the Realization of a Full-Fledged Private Sector-Led Ecosystem"

[Asia Economy Reporter Kwangho Lee] The Korea Venture Capital Association, the Venture Business Association, the Korea Women Venture Association, and the Korea Startup Forum jointly issued a statement on the 4th, saying, “We welcome the government’s ‘Plan to Create a Dynamic Venture Investment Ecosystem’ announced today and support the government’s policy direction to strengthen the dynamism of the private-led venture investment ecosystem.”

The Ministry of SMEs and Startups announced the ‘Plan to Create a Dynamic Venture Investment Ecosystem’ at the Emergency Economic Ministers’ Meeting on the 4th, aiming to establish a private venture mother fund with an annual venture fund size of around 8 trillion won. The plan includes expanding tax credits for venture investments and introducing advanced venture finance techniques such as convertible notes.

The associations stated, “This is a timely measure reflecting the voices from the startup industry raised so far,” and added, “It will positively contribute to the recovery of the weakened venture investment sentiment.”

They also said, “The establishment of a private mother fund base and tax support measures will serve as incentives for large-scale domestic and international private capital to flow smoothly into the market,” and expressed expectations that “it will contribute to the birth of numerous global startups on the world stage in the future.”

Regarding the activation of the secondary recovery market, attraction of global capital, and introduction of advanced venture finance techniques, they evaluated that “these measures solve issues related to private investment, recovery markets, and globalization, which were previously considered insufficient, enabling stable supply of venture investment funds to startups.”

They added, “We hope that this opportunity will realize a full-fledged private-centered ecosystem,” and “We will continue to make efforts to ensure that this policy is quickly implemented on the ground and bears successful fruit.”

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