Assemblyman Jeong Jinwook: "Venture Investment Act Amendment Passed at National Assembly Plenary Session"

Early-stage, Regional, and Deep Tech Companies:
The New Growth Engines of the Korean Economy

The partial amendment to the Venture Investment Promotion Act, which effectively makes permanent the duration of the Mother Fund-a core foundation supporting the national venture investment ecosystem-was finally passed at the National Assembly plenary session on December 2.

Assemblyman Jeong Jinwook of the Democratic Party of Korea, who sponsored the bill, stated, "If the Mother Fund is shaken, the entire Korean venture investment market is affected," adding, "We have established a new foundation for a policy fund for which the government is responsible."

This amendment was promoted as a key policy initiative of the Lee Jaemyung administration to address investment gaps in long-term and high-risk sectors such as AI, deep tech, and regional ventures by revising the Mother Fund's expiration date (previously set for 2035) to better reflect current realities and to ensure the stability of the national venture investment structure.

The Mother Fund is a policy investment platform that uses government capital as seed money to attract private investment, thereby driving the growth of early-stage, regional, and startup companies. However, under the current law, its duration was limited to 30 years, meaning that the Mother Fund, which was launched in 2005, was scheduled to automatically terminate in 2035. As a result, the industry has raised structural concerns about a contraction in early-stage investment, a funding gap in regional areas, and the lack of long-term investment in deep tech.

The amendment includes provisions to: delegate the determination of the duration to a Presidential Decree; allow for 10-year extensions with approval from the general meeting of members; and introduce a requirement for the Minister of SMEs and Startups to report in advance to the National Assembly.

During discussions in the legislative subcommittee and the standing committee, key principles proposed by Assemblyman Jeong-such as the approval process through the general meeting of members and the structure for 10-year extensions-were fully reflected in the alternative legislation.

Assemblyman Jeong Jinwook emphasized, "This legislation directly incorporates the concerns and demands that have been consistently raised in the field," and added, "Ultimately, the essence of lawmaking is how accurately the voices from the field are reflected."

He continued, "Early-stage, regional, and deep tech companies are the new growth engines of the Korean economy, and if investment in these sectors is cut off, the nation’s future industrial competitiveness itself will be at risk. The Lee Jaemyung administration will use every means to protect and nurture the venture ecosystem to ensure that the so-called 'third venture boom' is firmly established."