Ministry of SMEs and Startups Announces Plan for Reconsideration of 'Administrative Disposition for Violation of Venture Investment Laws'

The Ministry of SMEs and Startups announced on the 8th that it has established sanction guidelines specifying the content and level of administrative penalties imposed on venture capital companies and venture investment associations for violations of venture investment laws by type.

As a follow-up measure to the "Measures to Revitalize Venture Investment" announced on the 5th, the Ministry of SMEs and Startups prepared these guidelines by comprehensively considering the severity, intent, negligence, and correction status of each type of violation to ensure fair and consistent administrative penalties. Based on this, a re-examination will be conducted upon separate application for administrative penalties imposed for violations of venture investment laws since the enforcement of the Venture Investment Act on August 12, 2020.

Venture capital companies and operators of venture investment associations may refer to the sanction guidelines and apply for re-examination to the Ministry of SMEs and Startups if the previously imposed administrative penalties such as warnings and corrective orders fall under grounds for mitigation or exemption as stipulated by law.

The results of the re-examination will be finalized by the Sanction Review Committee for Venture Capital Companies and Venture Investment Associations. The sanction guidelines will be used as key reference materials when deciding administrative penalties.

Operators of venture capital companies and venture investment associations wishing to request re-examination must submit an application and supporting documents by November 24. Detailed information can be found in the announcement on the Ministry of SMEs and Startups website.

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