The Ministry of Small and Medium Enterprises and Startups announced that it will implement a revision of the 'regulations on the registration and management of venture investment partnerships' starting on the 26th, simplifying the interim distribution procedures of venture investment partnerships and raising the investment limit for mergers and acquisitions (M&A) venture funds in listed companies.
Through this revision, the Ministry of Small and Medium Enterprises and Startups allows distributions to be made to members after prior notification 14 days in advance if there is an investment distribution method predetermined in the partnership agreement. Existing venture investment partnerships are required to obtain member consent every time they distribute interim investments, making it time-consuming to distribute small recovery amounts.
Additionally, to revitalize the venture investment recovery market, the investment limit for mergers and acquisitions (M&A) venture funds, which was set at 20% to 60% in the 'dynamic venture investment ecosystem development plan' of 2022, has been expanded to 60%. Although the maximum limit was being implemented at 60% in the field, this amendment to the enforcement decree formalizes that limit.
Kim Bong-deok, the policy director of the Ministry of Small and Medium Enterprises and Startups, stated, "The implementation of this revision of the regulations on the registration and management of venture investment partnerships will increase the flexibility of fund operations in venture investment partnerships, creating a healthier and more dynamic venture investment environment." He also noted, "We will continue to listen to field opinions and work on improving the system for the development of the venture investment ecosystem."