Disclosure obligations of venture capital accelerators to be strengthened
Byung-Keun Kim
Jan 02, 2023 (Gmt+09:00)
Lee Young, the minister of SMEs and Startups of S.Korea (Courtesy of Yonhap) The Ministry of SMEs and Startups said on Monday that an amendment to the Venture Capital Investment Promotion Act, which will strengthen the disclosure obligations of startup planners (accelerators), a major participant in the venture capital investment market, will be declared the next day.
Accordingly, the items to be disclosed as prescribed by the notification of the Minister of SMEs and Startups, such as the average investment volume for early startups and the status of startups under professional incubation, will be determined by the law.
"The revision to the Venture Capital Investment Promotion Act will somehow alleviate the problem of information asymmetry between startups and accelerators, helping startups that seek to receive professional incubation service and enlist investment to select highly qualified accelerators," said an official of the Ministry of SMEs and Startups.
According to the supplementary provisions, the revised law will come into effect on Apr. 3, the day after three months' time from the Jan. 3 announcement.