Regulator to ease some rules on investment vehicles for startups
SEOUL, Oct. 7 (Yonhap) -- South Korea's financial regulator said Monday it will soften some rules on proposed investment vehicles for startups, in a fresh bid to help support local venture firms.
Last month, the Financial Services Commission (FSC) unveiled a set of measures to boost venture capital investment in promising startups, including an introduction of investment vehicles.
The investment vehicles, to be introduced in the second half of next year, will be allowed to raise funds from investors. After listing the investment vehicles on the stock markets, they will be required to invest in unlisted firms.
An investment vehicle, called a "Business Development Company" by the FSC, will be required to invest more than 60 percent of its total assets in unlisted firms whose market capitalization is less than 200 billion won (US$167 million).
Under the eased rules, the investment cap will be exempted for one year, the FSC said in a statement.
Investment in startups reached a record high in the January-August period this year, driven by hopes of lucrative returns and policy support, earlier data showed.
A total of 2.79 trillion won was invested in startups in the first eight months of the year, up 25.5 percent from the same period last year, according to the data from the Ministry of Small and Medium-sized Enterprises and Startups.
kdh@yna.co.kr
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