[Photo by Kim Jae-hoon]
The South Korean government is seeking ways to enable retail investors to easily invest in unlisted startups with the potentials to become the next unicorns like Woowa Brothers Corp., Krafton and WeMakePrice.
“We are devising to allow securities companies sell venture funds and make them more accessible to retailers,” said Park Young-sun, SMEs and startups minister, in an interview with Maeil Business Newspaper.
“The design is under talks with the Financial Services Commission and Korea Financial Investment Association,” Park added.
Venture capital funds are available to retailers but mostly in angel fund concept as they are locked for minimum seven years. They yield relatively high at 7.3 percent per annum and also come with tax deduction.
The ministry aims to make easier ways for more individuals, not just the rich, to invest in such funds. Pulling more retail investors could aid the government’s hope to bump up the number of unicorn firms with value of over $1 billion to 20 by 2020.
Various ways are being considered including launching fund of funds or lowering the private equity fund investment limit, she said.
By Lee Duk-joo, Choi Hee-seok and Lee Ha-yeon
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]