Mandatory Venture Investment Period Extended from 3 to 5 Years… Major Overhaul of Startup Support Systems in Second Half
Date
Jul 17, 2026
Classification
- Startups
#
- Policy/Regulation
Author
Effective July 1, the mandatory venture investment period for private investment partnerships and venture investment partnerships has been extended from three years to five years. The 20% individual investment requirement for each partnership has been abolished, and only the investment requirement at the fund-wide level remains. A new 'R&D Commercialization Project Guarantee' has been established to provide up to 10 billion won in support to companies commercializing R&D results.
From the second half of 2026, regulations on venture investment management will be eased and new financial support for technology commercialization companies will be introduced.
Mandatory investment period raised to 5 years… Investment scope of AC Private Investment Partnerships also expanded
Effective July 1, the mandatory venture investment period for private investment partnerships and venture investment partnerships has been extended from the existing three years to five years. While the 20% individual investment requirement for each partnership is abolished, the investment obligation at the overall fund level remains in place. The investment scope of private investment partnerships where an AC participates as a General Partner (GP) has also been expanded to include startups with less than five years of experience and no prior investment history. This reorganization enables investment partnerships to formulate investment strategies more flexibly and secure sufficient time for identifying promising companies.
New guarantee of up to 10 billion won established for R&D commercialization companies
Starting in July, the 'R&D Commercialization Project Guarantee' will be implemented for companies that have completed government R&D projects within the last five years or have commercialized technology transferred from public research institutes. Based on an evaluation of the project's technological capabilities and business viability, support of up to 10 billion won—including 3 billion won in working capital—will be provided, and guarantee fees will be reduced by up to 0.5%. This is expected to serve as a new means of commercialization financing for technology companies that face difficulties in securing funds during the processes of prototype production, certification, and mass production preparation following R&D.
From attracting global talent to supporting exports… the remaining challenge is establishing the system.
In addition, the operation of the 'Top Tier Visa' to support export-oriented SMEs and attract top overseas talent, as well as the expansion of the SME retirement pension fund 'Blue Seed,' are being pursued. In the early-stage investment market, the key question remains whether the extension of mandatory terms and the expansion of AC investment scope will actually lead to increased capital inflow into early-stage companies. The impact felt on the ground regarding the newly established guarantee system is also expected to vary depending on the screening criteria and the speed of implementation.
The institutional reforms for the second half of this year can be summarized along two axes: expanding the autonomy of investment partnership management and supplying funds for technology commercialization. This change provides fund managers with flexibility in strategy formulation and opens up new financing channels for R&D-based startups during the "death valley" phase.
#VentureInvestment #PolicyReform #R&DCommercialization #PrivateInvestmentPartnership #MinistryOfSMEsAndStartups
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