1. Reasons for Amendment

As a follow-up measure to the amendment of the Enforcement Decree of the Venture Investment Promotion Act (Enforced on August 23, 2022), the relevant provisions shall be overhauled to specify the delegation matters and supplement the previous omissions.

2. Major Provisions

A. Prepare basis for recognition of project investment’s obligation to invest (Article 7)

Although project investment is an investment type based on the Venture Investment Promotion Act, it is not included in the subjects recognized for the investment obligation ratio stipulated in the Enforcement Rules of the Venture Investment Act. Thus, the basis for calculating the project investment amount shall be established by including it in the investment obligation ratio.

B. Expand the subject of liquidation audit by venture investment associations (Article 27)

Following expansion of the accounting audit subject of the venture investment association, the subject of the preparation of the liquidation audit opinion to be submitted at the time of the association’s liquidation shall be expanded from the accounting firm to the auditor.

C. Expand reports on liquidation results of individual investment associations (Article 10)

The performance-based bonus payment statement, minutes of the general meeting, and audit opinions of external auditors that were previously omitted from the report of the liquidation results of the private investment association liquidator shall be added.

D. Clarify the criteria for calculating the investment ratio of startups by startup planners (Article 13)

When calculating the investment ratio of a startup planner in an early startup, the investment amount through an individual or venture investment association formed by the startup planner shall be explicitly included in addition to the investment amount under the existing new share subscription and conditional share acquisition contract.

E. Overhaul missing provisions for delegation related to the definition of management control (Article 20)

The Enforcement Decree of the Venture Investment Act delegates the definition of management control among the restrictions on the activities of Investment Companies for Establishment of Small and Medium Enterprises. However, the Enforcement Rules omit related provisions, thus the basis for citing the missing Enforcement Decree shall be added.