Financial authorities will reform the system so that foreign investors can participate in equity crowdfunding (online small investment). When a company successfully raises funds through crowdfunding, it will be given preferential treatment when listing on the KONEX market.
During a meeting to celebrate the 100th day for the launch of crowdfunding, held at the Culture Creation Venture Complex in Jung-gu, Seoul, on May 4, Financial Services Commission (FSC) Chairman Lim Jong-ryong said, “In a bid for companies, which have succeeded in crowdfunding, to attract follow-up investment, we will provide information about companies to foreign investors and actively promote it.”
First of all, financial authorities will create English websites of crowdfunding information website “Crowdnet,” the Corporate Investment Information Madang (platform) and the websites of brokerage firms. Moreover, it will send information about domestic crowdfunding system to companies belonging to angel investment associations in the U.S. and the U.K. in order to attract investment.
The crowdfunding system is designed to allow individual investors to invest in venture firms with a small sum of money and it has come into effect from January 25. As of May 3 on the 100th day of the implementation, 32 companies succeeded in raising funds and 2,434 investors made 5.77 billion won (US$4.99 million) of investments.
Lim said, “We will give full political support through priming water funds and fund of funds so that the crowdfunding system can be settled as a major measure for venture companies to raise funds.”