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January 2018
Two Measures to Promote ‘Growth through Innovation’
The government has announced measures to support its ‘growth through innovation’ initiative: measures to improve the KOSDAQ market to stimulate venture capital and plans to raise 10 trillion won worth of venture capital funds by 2020.
1. Improve the KOSDAQ market Although the KOSDAQ is the most important source of business financing for ventures, it has been considered less trustworthy, crowded with speculative investment and short-term trading. The government unveiled its measures to improve the KOSDAQ market on January 11, which is aimed at promoting venture capital by further developing the market into a more sound and trustworthy one.
Boost the market 1) Increase incentives - Promote KOSDAQ venture funds 1) by giving individual investors an 1) Requirements for a KOSDAQ venture fund to be eased from holding more than 50 percent of newly issued venture shares to more than 15 percent of newly issued venture shares plus more than 35 percent of new or existing shares issued by ventures or SMEs graduating from ventures less than 7 years ago