The Ministry of SMEs and Startups (Minister Han Sung-sook, hereinafter referred to as the Ministry of SMEs and Startups) and the Korea Venture Capital Association (Chairman Kim Hak-gyun, hereinafter referred to as the Association) announced that they are 'recruiting companies to participate in the venture capital self-regulation' and will be accepting applications from participating companies from Wednesday, September 17 to Friday, October 10.
While venture investment-related systems and regulations have traditionally been government-led, the growth of the investment ecosystem and the expanding influence of venture capital have necessitated the introduction of a private-sector-led, preventative self-regulatory system to enhance the soundness of the venture investment market.
The Association has been working to foster a sound and trustworthy venture investment culture by establishing self-regulatory guidelines that venture capital firms must adhere to, including establishing its own code of ethics and internal control standards.
The Ministry of SMEs and Startups, in collaboration with the Korea Venture Capital Association, established a self-regulation evaluation system this year to promote voluntary self-regulation in the private sector. The evaluation targets venture capital firms* that voluntarily participate. The association assesses their self-regulation governance, code of ethics, internal control standards for conflicts of interest prevention, standards for handling venture capital fund trustee business, and anti-money laundering practices. The evaluation then assigns a total of six grades (S, A+, A~D).
The Ministry of SMEs and Startups will provide preferential treatment (additional points) to venture capital firms with excellent evaluations in the Mother Fund investment program from 2026 onward, and award the top two firms with Ministerial Commendations. Furthermore, the Ministry plans to promote a transparent and responsible venture investment culture by disclosing a list of highly evaluated venture capital firms.
Kim Bong-deok, director general of venture policy at the Ministry of SMEs and Startups, said, “The self-regulatory evaluation is an important opportunity for the venture capital industry to increase its own confidence,” and added, “The government plans to actively support the private sector’s autonomous efforts to establish a responsible investment culture and establish excellent venture capital firms as role models in the market.”
Kim Hak-gyun, the association's president, said, "This self-regulatory evaluation is significant in that it is a voluntary standard established based on the industry's voluntary sense of responsibility." He added, "Private-led self-regulation will enhance the transparency and reliability of the venture investment market."
Further details can be found in the Korea Venture Capital Association announcement.
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