Investment Pay-back Policy
The South Korean government has come up with various policy measures for the promotion of M&A-based investment payback in the domestic venture market. According to the plans, the Centers for Creative Economy & Innovation are to act as M&A mediators while more funds are raised for the same purpose.
It has long been pointed out that M&A-based investment payback in South Korea has yet to be further developed. In addition, the problem has hindered the growth of startups and angel investors’ activities in many cases. Experts have advised that M&A by large corporations is essential for global success stories comparable to Alibaba and Uber. The South Korean government has responded to this call at this time.
The government is planning to meet firms housed in the Centers for Creative Economy & Innovation and looking for M&A opportunities before introducing them to those hoping to buy them via organizations such as the Korea Exchange, venture associations and the Association of High Potential Enterprises of Korea.
The M&A funds for assisting in venture firms’ technological development and overseas business activities are to be increased by approximately 50 billion won to 200 billion won, too. At the same time, more restrictions are put into place with regard to the appropriation of technology and manpower and trade secret infringement.