Venture Industry: "The Venture Business Act is a Livelihood Bill... Must Pass the Legislation and Judiciary Committee"

Innovation Venture Organizations Council to Announce Statement on the 6th

The venture business community has called for the passage of the "Partial Amendment to the Special Measures for the Promotion of Venture Businesses Act," which includes provisions such as the regularization of the law and performance-based stock options, through the National Assembly's Legislation and Judiciary Committee.

The Innovation Venture Organizations Council, composed of the Korea Venture Business Association, Korea Startup Forum, and others, stated in a press release on the 6th, "We hope that the amendment to the Venture Business Act, a representative livelihood bill that serves as the foundation for South Korea's economic growth and job creation, will definitely pass the Legislation and Judiciary Committee in December."

The council emphasized, "This amendment aims to remove the expiration date of the Venture Business Act, which has been operated as a temporary law and only had its validity extended twice in 2007 and 2016, and to establish a legal basis for long-term support of venture businesses. By regularizing the law, it will serve as a livelihood bill that acts as a pillar for economic growth and job creation by advancing the venture ecosystem and enhancing the competitiveness of venture companies."

Furthermore, the council explained, "The Venture Business Act was enacted as a special law for various reasons at the time of its introduction and has been maintained as a temporary law according to the government's policy goals. However, the effectiveness of the law has been clearly confirmed through its implementation, and the share and status of venture businesses in our economy have greatly increased compared to when the law was enacted, proving that the law has functioned effectively and that there is sufficient need for its amendment."

The council also stated, "The performance-based stock option system included in the amendment is a stock-based compensation system implemented in advanced venture countries such as the United States. It is designed to attract excellent talent to venture companies and resolve manpower shortages. The amendment aims to establish the legal basis for implementing this system and to create jobs through the influx of talent into venture businesses."

Moreover, the council added, "The government also announced in August, through measures such as the Startup Korea plan, that it would supplement support systems backing the sustainable growth of venture businesses, including the regularization of the Venture Business Act and the introduction of the performance-based stock option system. Since the bill has been proposed by both ruling and opposition parties, we sincerely hope it will pass the Legislation and Judiciary Committee this time."

The council includes the Korea Venture Business Association, Korea Startup Forum, Korea Mobile Enterprise Promotion Association, Korea Venture Capital Association, Korea Accelerator Association, Korea Angel Investment Association, Korea Women Venture Association, Korea Artificial Intelligence Association, Korea Internet Enterprise Association, Korea Early Stage Investment Institution Association, and IT Women Entrepreneurs Association, among others.