Choi Sang-mok "Preparing Support Measures for the Venture Ecosystem in the Second Half of This Year"

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Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok announced that a 'Venture Ecosystem Support Plan' will be prepared in the second half of this year.

On the 4th, Deputy Prime Minister Choi met with the heads of major associations of the Innovation Venture Council at the Government Seoul Office, where he listened to recent trends in the venture industry and field difficulties, and made this announcement. The Innovation Venture Council is a consultative body consisting of 19 associations and organizations in various fields such as investment and industry related to the venture ecosystem.

Attendees including Sung Sang-yeop, President of the Venture Business Association, mentioned that due to the nature of venture companies, it is difficult to apply labor time regulations similar to other industries, and proposed regulatory improvements for new industry innovation and expansion of personal information utilization. They also requested support for securing and nurturing talent in venture companies, expansion of venture fund support, and emphasized the importance of revitalizing the investment recovery market for growth-stage companies.

In response, Deputy Prime Minister Choi stated that the government is actively supporting venture companies' financing by quickly establishing venture funds worth 2.8 trillion won through the mother fund this year.

In particular, the government plans to support the revitalization of the recovery market by creating a secondary exclusive fund of over 100 billion won through the Startup Korea Fund, which will be raised to 800 billion won this year. The fund management company will be finally selected in September to begin fund formation.

Deputy Prime Minister Choi added, "We plan to enhance the self-sustainability of the startup ecosystem in regions that still show a significant gap compared to the metropolitan area," and said, "We are establishing a regional exclusive venture fund worth 1 trillion won by 2026."

He further stated, "We also plan to actively support building performance and experience by supporting the formation of funds by investment and incubation specialized companies located in the regions and expanding evaluation bonus points for regional locations when selecting entrusted operators of the mother fund."

Additionally, through the opening of corporate technology evaluation and financial information held by the Korea Technology Finance Corporation and the Credit Information Agency, private investment institutions such as venture capital will utilize this data to discover investment targets and induce the expansion of investments in venture companies.

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