Venture Industry "Welcomes Announcement Allowing Corporate Venture Capital"

[Asia Economy Reporter Kim Cheol-hyun] The innovation and venture industry welcomed the government's announcement on the 30th regarding the 'Plan to Allow Limited Ownership of Corporate Venture Capital (CVC) by General Holding Companies.'

The Innovation Venture Association Council, which includes the Venture Business Association, Innobiz Association, and Korea Startup Forum, stated in a commentary on the same day, "Through the government announcement, the long-standing agenda raised by the innovation and venture industry?the allowance of CVC ownership by general holding companies?has been approved, which is expected to further activate venture investment by private capital and significantly contribute to fostering new industries."

Global IT companies such as Apple and Google continuously discover new businesses and expand new markets through active startup investments and mergers and acquisitions. However, domestically, due to the financial-industrial separation regulation, the establishment of CVCs by general holding companies has been prohibited, and investment activities have been insufficient due to negative perceptions of large corporations, according to industry evaluations.

The industry stated, "Large corporations will discover new technologies and growth engines, while venture companies receiving investments will create business cooperation and growth foundations by utilizing the infrastructure of large corporations, establishing a Korean-style innovation ecosystem where large corporations and venture companies coexist." They added, "Going forward, CVCs are expected to play a more active and influential role in the venture ecosystem and establish themselves as key players. We also hope for continuous policy improvements to ensure that the system takes root properly and develops in the future."

Riding on this announcement, the innovation and venture industry plans to take the lead in achieving innovative growth and job creation. The industry emphasized, "We expect the government to continue listening to the difficulties and voices of on-site companies in the innovation and venture sector and boldly reflect these in policies to support major innovative industries in achieving visible results across various fields."