Venture Association "Welcomes 10.5 Trillion Support Plan... Requests Passage of Multiple Voting Rights Act"

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The Korea Venture Business Association expressed strong support on the 20th for the government's announcement of a 10.5 trillion KRW scale venture and startup support plan. At the same time, it urged for tax incentives related to venture investments, expansion of the Korea Fund of Funds, and the swift passage of the multiple voting rights bill.

On the same day, the Association released a statement regarding the "Innovative Venture and Startup Funding Support and Competitiveness Enhancement Plan," jointly prepared by the Ministry of SMEs and Startups and the Financial Services Commission. [Related article= Government guarantees 1.2 trillion KRW for companies under 3 years old... 2 trillion KRW invested in investment-purpose funds]

The Association stated, "Additional support such as special guarantees through policy financial institutions will be a great help to venture companies struggling amid increasingly difficult economic conditions," and added, "The expansion of secondary funds and M&A support measures reflect proposals made by the industry, raising great expectations."

However, it noted, "The plan does not include measures to expand the Korea Fund of Funds for small and medium venture capital (VC) firms," and expressed hope that this would be reflected through a supplementary budget in the second half of the year.

Minister Lee Young of the Ministry of SMEs and Startups and Chairman Kim Joo-hyun of the Financial Services Commission are announcing the "Measures to Support Funding and Strengthen Competitiveness of Innovative Venture Startups" on the 20th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Dongju Yoon doso7@

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Furthermore, to revitalize private venture mother funds, it called for increasing the investment tax credit for major corporate investors from the current 8% to a maximum of 15%. It also requested the passage of the multiple voting rights bill, a long-standing wish of the venture industry that has been pending in the National Assembly for a long time. The Association pledged to cooperate in revising the Venture Business Act into a permanent law to ensure stable support for about 35,000 venture companies.

The Association stated, "In response to the government's venture and startup funding support and competitiveness plan, we will take the lead in private-sector-driven innovative growth and strive to overcome the economic crisis and secure future growth engines."

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