Business · Markets · 2 days ago
Securities group plans 1 trillion won to expand venture investment exits
The Korea Financial Investment Association held a seminar in Seoul on October 8 about how venture investors can get their money back.
Investors usually recover their money when a company goes public, is bought, or existing shares are sold.
In South Korea, about 85% of venture investment exits are tied to initial public offerings, or IPOs.
Speakers said this reliance is risky because the IPO market has been limited, while new venture and private equity funds have grown.
They called for a stronger secondary market, where investors can sell company shares or fund stakes to other investors before an IPO or sale of the company.
The association said about 1 trillion won will be invested over the next three years to help build this market.
Nine large investment banks are expected to invest about 700 billion won, while 15 securities firms will contribute 300 billion won to a joint fund.
The Korea Financial Investment Association plans to invest about 1 trillion won over three years to help develop the market for selling venture investment stakes.
The plan was outlined at a policy seminar on improving venture investment exits held in Seoul on October 8.
Participants said South Korea’s venture exits are heavily concentrated in initial public offerings, limiting the options available to investors.
They called for a more active secondary market, where investors can sell company or fund stakes before an IPO or merger.
The funding is expected to include investments by nine large investment banks and a joint fund involving 15 securities firms.
- Who
- The Korea Financial Investment Association, investment banks and securities firms.
- What
- The association plans to invest about 1 trillion won over three years to support the venture exit market, including secondary-market activity.
- When
- The plan was announced at a seminar held on October 8; the article was published on October 10, 2026.
- Where
- The seminar was held at the Korea Financial Investment Association in Yeouido, Seoul.
- Why
- Participants said venture investment exits rely too heavily on IPOs and that a stronger secondary market could diversify exit options.
This story does not have two clearly opposing sides.
To secure new growth engines for the economy, the supply of risk capital to innovative venture companies is becoming important.
New funds are growing, while the IPO market, on which 85% of the domestic exit market depends, is stuck in a box range.
We will invest about 1 trillion won over the next three years to serve as seed funding for the development of the domestic secondary market.
The Korea Financial Investment Association held a policy seminar in Yeouido on improving the venture exit market.
Participants discussed diversifying exits beyond IPOs and developing the secondary market.
Maeil Business published its report on the seminar and investment plan.
- Planned investment
- About 1 trillion won over three years
- Large investment banks
- Nine banks will invest about 700 billion won individually, as reported in the article.
- Joint fund
- 300 billion won, with participation by the 15 securities firms with the highest operating profits
- Domestic venture exits
- About 85% rely on IPO-related routes
- Secondary fund share
- 5–8% of domestic new funds, compared with about 24% overseas
Sources
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