VC Association to Promote KOSDAQ Revitalization Fund and Rationalization of Exit Market System

Promotion of KOSDAQ Fund Linked to National Growth Fund
Improvements to Exit Market System Including VC Lock-up Reform
Appointment of Directors from NOW IB, Yuanta, Albatross, and UTC Investment

The Korea Venture Capital Association announced that it will promote the creation of a KOSDAQ revitalization fund and the rationalization of the exit market system this year to establish a competitive venture investment market.

On the 27th, at the Sono Felice Convention in Gangnam-gu, Seoul, Kim Hakkyun, Chairman of the Korea Venture Capital Association, was reviewing the agenda of the 2026 Annual General Meeting of the Korea Venture Capital Association.
Photo by Hwang Seoyul chestnut@

On the 27th, the association held the '2026 Annual General Meeting' and resolved the basic direction and key agenda items for the 2026 business plan, which included these initiatives. The core of the KOSDAQ revitalization fund is to provide liquidity to the KOSDAQ market and improve its quality, primarily through institutional investors, by establishing a fund linked to the National Growth Fund. The rationalization of the exit market system will be promoted through detailed plans such as easing VC lock-up regulations, improving pre-listing practices, activating secondary funds, and facilitating listings under the technology exception track.

A business plan to expand venture finance and establish an innovation system will also be implemented. First, the association will broaden the channels for participation in venture investment by various entities such as pension funds, financial institutions, and the private sector, and will seek new sources of funding. In addition, the association will explore ways to expand the participation of public funds-including 68 statutory funds, pension fund investment pools, and local governments-in venture fund investments.

To encourage banks’ active investment in venture funds, the association plans to continuously propose that financial authorities ease risk-weighted asset (RW) regulations. In September of last year, the Financial Services Commission announced measures to improve the RW standards for banks’ equity holdings. In principle, an RW of 250% applies, but for investments in unlisted stocks made for short-term trading (holding period of less than three years) or in venture capital firms with less than five years of operating history, the RW is set at 400%. The policy also included the creation of guideline criteria for policy-purpose funds, invested through funds, to allow RW of 100%.

The association proposes that the risk weight for unlisted stocks invested in by banks through venture funds be set at 250%, the same as for regular stocks, and to expand the scope of policy-purpose funds eligible for a 100% RW to all funds in which the Korea Fund of Funds and similar institutions have invested above a certain threshold.

In addition, the association plans to introduce industry-friendly Business Development Companies (BDC) to advance the venture investment system and investment environment, and to establish the institutional foundations needed to allow venture investment firms and venture fund management companies to issue security tokens (STO) and make equity investments.

At the general meeting, Seungwon Lee, CEO of NOW IB Capital; Youngkwan Jeong, Head of Yuanta Investment; Junghyun Choi, CEO of Albatross Investment; and Seung Han, CEO of UTC Investment, were appointed as new directors.

This content was produced with the assistance of AI translation services.