Discussing Challenges in the Contract Process
"We Will Seek Practical Solutions"
The Ministry of SMEs and Startups announced on December 23 that, together with Korea Venture Investment Corp., it held an inaugural ceremony for the "Venture Investment Contract Culture Development Forum" aimed at establishing a fair contract culture in venture investment.
The Venture Investment Contract Culture Development Forum is designed as an "open communication platform" where members of the venture ecosystem-including startups, venture capitalists, legal experts, and related organizations-gather to candidly discuss challenges encountered during the contract process and seek practical solutions. The government plans to review and identify future institutional improvement tasks based on the opinions gathered at the forum.
The launch event was attended by the Ministry of SMEs and Startups and Korea Venture Investment Corp., which are in charge of the forum's operation, as well as major related organizations such as the Korea Venture Business Association, Korea Startup Forum, Korea Venture Capital Association, Korea Early Stage Investment Accelerator Association, and Korea Angel Investment Association, along with private sector experts, all celebrating the forum's establishment.
Going forward, the Venture Investment Contract Culture Development Forum will hold regular meetings to: ▲ collect field opinions on unfair investment contracts and practices; ▲ analyze the causes of conflict between investors and investee companies and discuss solutions; and ▲ identify tasks for institutional improvement to foster a healthy venture investment ecosystem.
During the event, plans were also announced to form a "pool of field experts," which will serve as a core driving force for the forum. The Ministry of SMEs and Startups and Korea Venture Investment Corp. will receive recommendations from each association and related organization for experienced venture capitalists, accelerators, and startup CEOs, organizing them into groups by field and stage. Through this, they aim to systematically gather issues and improvement ideas arising from actual contract situations.
Kwak Jaekyung, Director of Investment Management and Supervision, stated, "We hope this forum will become a practical discussion body where investors and startups can understand each other's perspectives and find solutions for mutual growth," adding, "As the venture investment market grows quantitatively, a fair contract culture must be established to ensure sustainable growth. In this spirit, we will actively identify actionable tasks with members of the venture investment ecosystem and foster an investment culture of co-prosperity."
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