People Power Party's Kim Sang-hoon Pushes for Permanent Enforcement of 'Venture Business Act' Ending in Late 2027

Representative Proposal of the Revised Bill

Kim Sang-hoon, a member of the People Power Party (Daegu Seo-gu), has taken the lead in proposing the "Partial Amendment to the Special Measures Act on Fostering Venture Businesses" (Venture Business Act). The main content of the amendment is to convert the Venture Business Act, which is currently implemented on a temporary basis, into a permanent law.

As of 2021, venture businesses accounted for 37,686 companies, 834,627 employees, and sales of 223 trillion won, playing a key role in the South Korean economy alongside large and medium-sized enterprises. In particular, their research and development expenses relative to sales are 1.9 times (3.2%) that of large corporations, leading the development of innovative technologies in South Korea.

Kim Sang-hoon, member of the People Power Party.

The current support law also focuses on the role of venture businesses, aiming to provide smooth policy support for funds, manpower, and locations necessary for business activities.

However, this law is a temporary law with an expiration date, set to end in December 2027. This places the sector in a situation where policy discontinuity for venture businesses must be anticipated over the next three years. Especially at a time when global economic slowdown due to high inflation and high interest rates is shrinking venture investment, if policy support is discontinued, small-scale venture businesses could face significant difficulties.

Accordingly, the amendment removes the temporary provisions of this law to make support for venture businesses permanent. This will help startups and venture businesses to continue their management activities stably.

Kim Sang-hoon of the People Power Party stated, “The corporate ecosystem for the growth of venture businesses has not yet been stably established,” and pointed out, “If the validity period of the current law expires, the growth of venture businesses may be delayed.” He added, “Since the law converting the Special Act on Medium-sized Enterprises into a permanent law recently passed the National Assembly, it is expected that venture businesses will also be able to continue their corporate activities stably through the permanent enactment of the Special Act on Venture Businesses.”

This content was produced with the assistance of AI translation services.