Seoul: The head of the Financial Services Commission (FSC) said Thursday the commission will make efforts to increase the inflow of venture capital into the local market, in a bid to raise investments in emerging technologies.
According to Yonhap News Agency, FSC Chairman Lee Eok-won made the remarks in a meeting with the head of the Korea Financial Investment Association (KOFIA) and executives from local brokerages and asset management firms. “The development of ultra-advanced technologies, such as artificial intelligence (AI) and quantum mechanics, is often uncertain and requires a lot of time and an enormous amount of investment,” Lee said. “Venture capital’s role is crucial for the country’s survival in the ultra-advanced technology race,” he added.
Financial authorities have been working to revise existing systems so that brokerages can supply venture capital to the local market through the issuance of investment management accounts (IMAs) or promissory notes. Lee also requested that financial firm executives promote investments in business development companies (BDCs), closed-end funds that invest in small- to medium-sized companies yet to be listed on the stock market. “People can easily make small investments in early startups and share the proceeds of growth through the publicly offered fund,” he said.