1. Reason for revision
The aim is to stipulate the requirements for establishing corporate growth collective investment schemes and matters on the operation method of collective investment properties, in order to establish a corporate growth collective investment scheme to invest more than 40/100 of collective investment properties in total assets of the collective investment scheme in venture companies with high growth potential, to lay an institutional foundation for the active support of growth of venture companies, etc. and to supply them with venture capital better.
2. Main contents
A. Establishment of a corporate growth collective investment scheme, etc. (Establishment of Article 9 (30), Article 9 (31), subparagraph 6 of Article 229, and Article 229-2 of the Draft)
The requirements to establish a corporate growth collective investment scheme are stipulated so that a corporate growth collective investment scheme to invest more than 40/100 of collective investment properties in total assets of the collective investment scheme in venture companies with high growth potential is established as a closed-end fund with existence period of at least 5 years.
B. Requirements to approve the establishment of a corporate growth collective investment scheme (Article 12 (2) 6 of the Draft)
A person who wishes to obtain approval for the establishment of the corporate growth collective investment business shall basically satisfy the requirements for financial investment business, but the eased requirements to be applied for the authorization for the change of financial investment business shall be applied to major shareholders, etc. so that professionals of venture investments including venture capital, etc. may smoothly enter the corporate growth collective investment business.
C. Restrictions on asset management by corporate growth collective investment business entities (Establishment of Article 81 (1) and Article 81 (5) of the Draft)
1) As the corporate growth collective investment scheme mainly aims at unlisted companies, assets shall be managed differently from the collective investment schemes aiming at listed companies.
2) Restrictions on asset management by corporate growth collective investment schemes are separately prescribed by such method wherein, if a corporate growth collective investment business entity invests in the main target investment company such as a venture company, the application of restrictions on common asset management is excluded, but investment not larger than the legal investment ratio in the main target investment company is restricted.
D. Financial borrowing, etc. by corporate growth collective investment business entities (Establishment of Article 83 (1) 1-2, Article 83 (2) 2, and Article 83 (4) 2 of the Draft)
1) Collective investment business entities are not allowed to borrow or lend money when managing collective investment properties, in principle; in case of corporate growth collective investment business entities, however, it is required to allow financing borrowing or lending for the smooth supply of money to venture companies, etc.
2) When a corporate growth collective investment scheme invests in a main target investment company such as a venture company, the corporate growth collective investment business entities may exceptionally borrow money for lending to the main target investment company according to the calculation of the corporate growth collective investment scheme.
E. Application of penalties for violation of asset management restrictions (Establishment of subparagraph 9-2 of Article 444)
Any person managing the collective investment properties of a corporate growth collective investment scheme in violation of the asset management restrictions on corporate growth collective investment business entities, such as investing less than the amount equivalent to the legal investment ratio in a venture company or other main target investment company, shall be punished by imprisonment with labor for not more than 5 years or by a fine not exceeding KRW 200 million.
