FSS: "TogetherArt Submits Investment Contract Securities Report for the First Time... Under Thorough Review"

The Financial Supervisory Service announced on the 11th that Together Art, which operates an art brokerage business, has submitted the securities registration statement for investment contract securities for the first time.

Together Art raised 790 million KRW from multiple investors to acquire and manage Stanley Whitney's artwork "Stay Song 61," and plans to dispose of the underlying asset within a maximum of 10 years to pay liquidation profits or losses to investors.

The Financial Supervisory Service explained, "Investment contract securities differ from stocks and funds, have complex and difficult-to-understand characteristics, and there have been no previous issuance cases. We urge investors to fully recognize this and to make investment decisions after thoroughly understanding issuance-related information through the registration statement."

Investment contract securities have a structure where investors jointly invest in a specific business and receive business profits and losses. This differs from stocks that invest in a specific company. Also, although they invest in specific assets, there are no restrictions on the issuer qualifications, but since there is currently no secondary market, liquidity is limited, which distinguishes them from funds.

A Financial Supervisory Service official stated, "Considering that the securities registration statement for investment contract securities can serve as a milestone for future submissions and a growth foundation for the fractional investment industry, we will conduct a thorough review to ensure that risk factors such as underlying asset risk, appropriateness of investment and profit/loss structure, joint business risk, and liquidity risk are faithfully described in the registration statement, and we will do our utmost to protect investors."

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