Minister Lee Young of the Ministry of SMEs and Startups is explaining the venture policies to be promoted in the future at the 20th Venture Summer Forum held in Busan on the 24th. [Photo by Venture Business Association]
[Asia Economy Busan=Reporter Kwak Minjae] The venture industry called for urgent government regulatory reforms and tax support to revitalize the venture investment market, which has been contracted due to the triple crisis of high inflation, high interest rates, and high exchange rates at the ‘20th Venture Summer Forum.’ The government responded by pledging to innovate bundled regulations and accelerate the introduction of multiple voting rights to foster the birth of emerging ventures and their growth into global unicorns.
The Korea Venture Business Association opened the ‘20th Venture Summer Forum’ on the 24th at Paradise Hotel in Haeundae, Busan, under the theme ‘A Better Tomorrow, Challenges for the Future.’ About 250 people attended, including Lee Young, Minister of SMEs and Startups, Kang Samgwon, Chairman of the Korea Venture Business Association, and representatives and executives of venture companies.
Kang Samgwon, Chairman of the Korea Venture Business Association, said in his opening remarks, “Despite government support policies and corporate efforts amid the triple crisis and worsening economic recession due to the Russia-Ukraine war, economic risks are diversifying and increasing.”
He added, “To revitalize the contracted venture investment market, it is urgently necessary to expand the government’s mother fund, adjust the tax credit rate for domestic corporations investing in venture funds (from the existing 5% to an expanded 10%), provide tax exemptions such as capital gains tax exemption, and improve regulations such as excluding venture fund investments from risk assets when calculating banks’ and financial institutions’ capital adequacy ratio (BIS), risk-based capital ratio (RBC), and net capital ratio (NCR).”
Lee Young, Minister of SMEs and Startups, said in his congratulatory speech, “Previous governments have put their lives on regulatory reform, but I understand that bundled regulations, which are difficult to resolve by a single ministry, have not been resolved,” adding, “Recently, as the government relaxed resolution regulations on satellite image security after a meeting of five ministers, we will innovate regulations that hinder the future with determination.”
He also expressed his will to introduce multiple voting rights. Minister Lee said, “The most significant issue, multiple voting rights, is something I have worked on since I was a member of the National Assembly,” and added, “We will support the birth of emerging ventures and their growth into global unicorns by creating a growth environment through the introduction of multiple voting rights.”
Furthermore, Minister Lee emphasized, “We will completely improve the research and development (R&D) support system currently being operated by the Ministry of SMEs and Startups from next year,” and said, “We will boldly reform the system that wastes time writing a single application and has been distorted to protect public officials in case of accidents.”
Finally, Minister Lee stated, “We plan to conduct a pilot project for the delivery price linkage system starting this September,” and emphasized, “The delivery price linkage system will definitely be implemented within three years, and intangible services such as software and knowledge services will also be guaranteed fair compensation.”
Busan=Reporter Kwak Minjae
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