Venture Investment Association Asset Custody Becomes Easier

Establishment of "Standards for Handling Trust Property of Venture Investment Associations"

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Lee Young) announced on the 31st that it has prepared and distributed the 'Standards for Handling the Entrusted Property of Venture Investment Associations' in collaboration with the Korea Venture Capital Association, Korea Accelerator Association, and Korea Angel Investment Association.

The current 'Act on the Promotion of Venture Investment' stipulates that venture investment associations must entrust the custody and management of the association's property to trustees such as banks or securities firms. However, as trustees have been reluctant to accept the entrusted property of venture investment associations, small and medium-sized enterprise startup investment companies or startup planners attempting to form associations have faced difficulties in the custody and management of association property.

The newly established 'Standards for Handling the Entrusted Property of Venture Investment Associations' clarifies the scope of work and responsibility between the managing partners of the association and the trustees, and presents standards for handling tasks during the entrustment process. Venture investment-related organizations plan to voluntarily apply the 'Standards for Handling the Entrusted Property of Venture Investment Associations' starting March 1 of this year, and will hold a briefing session for managing partners (member companies) of venture investment associations in February.

Minister Lee Young stated, "It is expected that uncertainties regarding the scope of work and responsibility related to the entrustment of association property will be resolved," and added, "Recently, securities firms and insurance companies have newly participated in the entrustment of association property, gradually improving the conditions for the entrustment of association property."