Foreign

S. Korea to expand support for venture firms

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26 Aug 2021 9:43 AM GMT
S. Korea to expand support for venture firms
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South Korea said that it planned to increase tax incentives for venture firms and support their drive for mergers and acquisitions (M&As) as part of efforts to nurture innovative startups. Under a vision to become one of the world’s major venture powerhouses, the government planned to support venture firms’ investment and reinvigorate the M&A market. […]

South Korea said that it planned to increase tax incentives for venture firms and support their drive for mergers and acquisitions (M&As) as part of efforts to nurture innovative startups.

Under a vision to become one of the world’s major venture powerhouses, the government planned to support venture firms’ investment and reinvigorate the M&A market.

This is according to the Ministry of SMEs and Startups on Thursday.

In a related move, the government planned to overhaul stock option schemes for startups and ease the burdens of their tax payments to encourage more talented people to work in venture companies.

The ministry said it would raise the ceiling of tax exemption to 50 million (US$42,800), won from the current 30 million won when entrepreneurs exercise their stock options.

The government planned to create a one trillion-won global venture fund in an effort to help more startups better raise capital from overseas and support their overseas push.

The country also seeks to reinvigorate the M&A market to help startups expand their presence.

It would also increase tax incentives for venture companies seeking M&As.

Currently, local venture firms are raising capital mainly through initial public offerings.

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