Venture Investment Act revisions approved, aiming to boost startup ecosystem

South Korea's Ministry of SMEs and Startups has advanced key legislation aimed at invigorating the nation's venture capital landscape. Revisions to the Enforcement Decree of the Venture Investment Promotion Act and the Special Act on Venture Business Promotion were approved by the State Council on June 23.

These legislative changes are a direct follow-up to the government's "Leap Forward as a Venture 4 Major Power" comprehensive plan, announced last year. The ministry stated the revisions are designed to create a more dynamic and supportive environment for venture businesses and investors.

The new regulations are scheduled to be officially implemented on July 1, following presidential approval and promulgation. However, certain administrative functions that will be delegated to the regional SME and Venture Business Offices will commence later, on January 1, 2027.

The government anticipates that these measures will significantly boost the venture ecosystem, encouraging greater investment and fostering innovation within the startup sector. The specific details of the delegated tasks and their phased implementation underscore a strategic approach to modernizing venture support infrastructure.