Venture capital (VC) firms IM Investment Partners and Xquared were selected as VCs with excellent internal controls.
On the 28th, the Korea Venture Capital Association (VC association) said it conducted evaluations for the 2025 VC self-regulation program participants and selected two corporations, IM Investment Partners and Xquared, as the top VCs.
The VC self-regulation program was first implemented in the second half of last year with the goal of improving the soundness of the venture investment market and establishing a proactive regulatory framework.
IM Investment Partners and Xquared received an S rating in the review of a total of five categories and 16 indicators, including the introduction of self-regulation, operation of a compliance officer system, internal controls, and prevention of conflicts of interest.
The two companies were also recognized for their internal control performance and received a commendation from the Minister of the Ministry of SMEs and Startups in Dec. last year.
The VC association said, "These corporations, which are relatively small to mid-sized in scale, have demonstrated the CEO's commitment to compliance management and have established efficient internal control processes despite limited personnel and resources."
The VC association also plans to provide incentives to VCs with excellent internal controls. First, management companies that receive a high evaluation grade (A or higher) will receive extra points when being selected as managers for the parent fund's delegated management.
An official at the VC association said, "We will continue to discuss awarding extra points with other limited partner institutions beyond the parent fund," adding, "We also plan to establish this as an indicator that supports competitiveness in fund formation."