The Korea Venture Business Association (Chairman Song Byeong-jun) held an ‘Innovation Discussion for Activating the Venture and Startup Investment Market’ in collaboration with the National Assembly Members’ Research Group Unicorn Farm on Thursday, July 3rd, in the first seminar room of the National Assembly Members’ Hall.
This discussion was organized to diagnose the lack of a recovery market and limitations in the capital procurement system, which are identified as key issues in the venture and startup ecosystem, and to discuss ways to improve the system.
The discussion was attended by Representative Kim Han-gyu and Representative Bae Hyeon-jin, who are the representatives of Unicorn Farm, as well as Representatives Jang Cheol-min, Lee Hae-min, Park Min-gyu, Kim Seong-hoe, Lee Jae-gwan, and Han Ji-ah. The presentations were given by Professor Choi Young-geun of Sangmyung University and Research Fellow Lee Seok-hoon of the Capital Market Research Institute on ▲Measures to Activate the IPO Recovery Market and ▲Directions for Improving the Technology Special Listing System, respectively.
In his opening remarks, Rep. Kim Han-gyu said, “The tightness in the recovery market is hindering the virtuous cycle of the venture ecosystem,” and, “We need to improve the system to ensure a balanced mix of investor protection and innovative growth.”
Rep. Bae Hyun-jin emphasized, “The limitations of the domestic recycling market are acting as an entry barrier for startup growth,” and “We must create conditions to prevent promising domestic companies from flowing out overseas.”
Rep. Jang Cheol-min, who presided over the meeting, said, “We need to create an environment where ventures and startups can recover and try again,” and Rep. Lee Hae-min pointed out, “Start-ups are having difficulty raising funds due to low accessibility to the capital market.”
Professor Choi Young-geun suggested in his presentation that “the government should indirectly support the foundation of a private-sector-led recovery market,” and emphasized the need for institutional supplementation to secure the independence of the KOSDAQ market and flexibility in the listing system.
Research Fellow Lee Seok-hoon said, “Technology-specific listing is an important listing route, but there are issues with market trust and information asymmetry,” and suggested ways to improve the system, such as increasing the inflow of funds centered on institutional investors, strengthening disclosure, and making abolition requirements more flexible.
The panel discussion that followed was attended by Jeon Hwa-seong, President of the Korea Startup Accelerator Association, Lee Jeong-min, Secretary General of the Korea Venture Business Association, Lee Mi-hyeon, Executive Director of the Korea Exchange, Ahn Sang-jun, CEO of Kolon Investment, and Hwang Su-gyeong, CEO of AstroGen, who discussed the operation of the system in the field and the need for improvement.
Participants made various suggestions, including ensuring consistency in the evaluation criteria for technology-related special listings, improving the tax system to strengthen the recovery market function, and improving the preferred stock conversion requirements and protective custody system.
Song Byeong-jun, chairman of the Korea Venture Business Association, said, “The KOSDAQ market was a listing platform for technology-oriented companies, but it is currently losing its original function due to its rigid system,” and added, “Improving the system, including the recovery market, is a key task for a virtuous cycle in the venture ecosystem.”
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