Education Public Officials Can Now Take Leave for Up to 7 Years When Starting a Business

Special Leave for Venture Startups Extended from 6 to 7 Years
Approval of the 'Special Act on Fostering Venture Businesses'

The government is supporting the entrepreneurial activities of education public officials.

The Ministry of SMEs and Startups announced on the 12th that the amendment to the "Special Act on the Promotion of Venture Businesses" (hereinafter referred to as the Venture Business Act) was approved at the Cabinet meeting.

[Image source=Yonhap News]

The Venture Business Act provides special provisions allowing education public officials such as university faculty members and researchers at national and public research institutes to take a leave of absence to start a venture business or to work as a representative or executive of a venture company.

With this amendment to the Venture Business Act, the special leave period has been extended from the previous 6 years to 7 years, the previous one-year limit on leave extension has been removed, and only the maximum allowable leave period of 7 years is stipulated, allowing flexible use of the special leave as needed.

The special leave system for venture startups was introduced in 1997 to enable highly skilled personnel to start businesses or work at venture companies more stably, and to support venture companies in attracting excellent talent to strengthen their technological competitiveness.

Previously, the Venture Business Act, which was operated as a temporary law in January, has been made permanent with the approval of the amendment. The Venture Business Act, which forms the foundation of the venture business support system, had been operated as a temporary law since its enactment in 1997, with only two extensions (in 2007 and 2016). The amendment removes the expiration date of 2027 stipulated in the current law and makes it permanent.

Additionally, the amendment includes provisions to elevate the method of granting stock options to a legal level to provide stronger protection of citizens' property rights. The amendment is scheduled to be enforced on September 20 after revisions to subordinate laws such as enforcement ordinances.

Oh Young-joo, Minister of SMEs and Startups, stated, “Securing excellent talent is the top priority for the growth of venture companies,” and added, “We will support venture companies through various systems such as special leave, stock options, and performance-based stocks.”