The Korea Exchange, Korea Securities Finance Corporation, Korea Securities Depository, and Koscom are collaborating to establish a secondary fund worth 1 trillion won over the next three years to invigorate the venture capital recovery market. This marks the first time these securities agencies have jointly created a secondary fund.
According to the Korea Securities Depository on September 30, the four agencies have agreed to form a secondary fund totaling approximately 1 trillion won over the next three years. Each agency will secure funding for the fund through internal resolutions.
A secondary fund acquires shares in venture companies held by existing investors instead of making new investments in those companies. This approach provides investors with a market to recover their investments while offering venture companies additional funding and a foundation for growth, thus playing a crucial role in the venture capital recovery market.
The establishment of this fund supports the government's policy to strengthen productive finance and aims to activate the recovery market for the venture industry, which is currently facing liquidity challenges. The securities agencies plan to use this initiative to establish a sustainable growth foundation for innovative venture companies and contribute to the nation's economic growth.
When combined with previously announced joint venture secondary investments in the securities industry, a total of 2 trillion won is expected to flow into the venture recovery market through the financial investment sector.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.