(1) Reasons for Proposal

In accordance with enactment of the Act on the Promotion of Venture Business Investment (Act No. 16998, promulgated on Feb. 11, 2020, to enter into force on Aug. 12) which aims to create a basis for promoting investment in founders, small and medium-sized enterprises, venture businesses, etc., and comprehensively and systematically foster venture businesses, this proposal aims to modify matters regarding the registration and management of private investment funds and the issuance of investment letters necessary for private investor tax exemptions that are delegated under the Act as well as matters necessary for their implementation.

(2) Major Provisions

A. Modification Regarding Founders and Mutual Investors of Private Investment Funds (Article 3).

B. Modification Regarding Documents for Application to Register Private Investment Funds (Article 5).

C. Provision of Criteria Regarding Operating Expenses in Disposal of Profit by Funds (Article 18).

D. New Insertion of Detailed Criteria on Administrative Measures, etc. Against Funds (Article 20).

E. New Insertion of Matters Such as Establishment and Operation of Sanction Deliberation Committee for Deliberation on Administrative Measures (Articles 21 through 25).