On July 27th, Lee Chang-yang, Minister of Trade, Industry, and Energy, announced at the CVC Alliance launch ceremony that the government intends to promptly finalize regulatory relief measures for the CVC (Corporate Venture Capital) sector. This move reflects the government's commitment to addressing obstacles related to external fund-raising regulations, which have been identified as barriers to domestic and international investment expansion.
The Ministry of Trade, Industry, and Energy has introduced various measures aimed at revitalizing the CVC sector, including the establishment of a 1 trillion won CVC policy fund. Plans also include easing the external investment requirements for general holding companies' CVCs and expanding allowances for founders, as outlined in proposed amendments to the Fair Trade Act. These changes are expected to provide financial support for startups in technology validation and market development, while also stimulating activity within the CVC sector.
Experts highlight the importance of the investment scale and role of general holding company CVCs, noting that regulatory adjustments responsive to market feedback are crucial.
