Korea Financial Investment Association Welcomes BDC Bill's Passage by Bipartisan Agreement, Says Institutional Foundation Established

On July 22, the Korea Financial Investment Association announced that it welcomes the passage of the Capital Markets Act amendment, which introduces the Business Development Company (BDC) system, through the National Assembly's Political Affairs Committee's Subcommittee on Legislative Review No.1.

A BDC is an investment vehicle that specializes in investing in and nurturing venture and innovative companies with high growth potential. The association explained, "This amendment was proposed separately by both the government and the ruling and opposition parties, who all recognized its necessity," adding, "It carries even greater significance as it passed the subcommittee by bipartisan agreement."

The financial investment industry expects BDCs to become comprehensive investment platforms that not only supply funds to innovative and venture companies, but also support company discovery and management consulting. Through this, the public will be able to directly participate in corporate growth and share in the performance of successful companies, establishing a virtuous cycle of 'investment-growth-return.'

In addition, BDCs are expected to provide a long-term and stable investment vehicle for supporting innovative companies. The association also pledged to do its utmost to ensure that investor protection is fully addressed throughout the BDC investment and management process.

Seo Yoo-seok, Chairman of the Korea Financial Investment Association, stated, "With the passage of the BDC bill, an institutional foundation has been established for private capital to play a core role in corporate finance." He added, "As the bill has taken its first step through bipartisan agreement, we hope that the National Assembly will process the legislation swiftly so that the system can be successfully established."