The government is coming forth with an investment of one billion won to actively support small and medium venture business that have been undergoing difficulties in raising funds due to the long-term stagnation of the KOSDAQ market. 

Activities include selecting 50 possible enterprises, collecting strategic plans to invite foreign capital, creating publicity IR (Investment Relationship) materials, opening investment road shows in and out of Korea and other activities will be supported with financial support of 80% of expenses (20% by the enterprise). 

Subjects of support will be scouted by the Regional Small and Medium Business Administrations and by the Venture Capital Association, and the selected subjects will be measured by specialized organizations and then be filtered out by a committee of officials from foreign investment organs. Specially chosen businesses will be assigned with specialists from each field and will continuously receive management. 

If the support project for inducing venture capital is fully activated various information exchanges, mutual visits and consultations will be executed thoroughly by an investment network of enterprises in and out of Korea and also with foreign investment agencies and banks in Korea. 

In addition, as a global standardization demanded by the international venture capital market is provided, investment incentives will become diversificated and as capacity of management is strengthened to fit the international standard, it will also contribute to promoting Korea’s international competitiveness. 

Source: Ministry of Planning and Budget, January 15, 2004