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'Venture Capital' is a financial company that raises profits by investing in promising startups by making funds from institutional investors or corporate money. On the other hand, CVC, or'corporate-led venture capital', is a method in which one company participates as a major shareholder and invests in startups. In the meantime, according to the so-called gold-separation principle that bans mutual ownership between finance and industry in Korea, companies could not hold CVC, but the government announced today (30th) that it would lift the regulations.

Reporter Kim Hye-min will tell you in detail what is different from the background.

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Domestic venture investment, which increased by double digits every year, fell for the first time in the first quarter of last year.

There is government support, such as mother funds, but private investment is poor.

In the U.S., where startups are active, corporate venture capital has developed significantly, accounting for half of venture capital investment.

Examples are Google's CVC, Google Ventures, and Intel's Intel Capital.

The government expects large enterprises to allow CVC to spur venture investment.


[Jae-Shin Kim/Director, Fair Trade Commission: As the need to improve economic vitality is very high, the way for the abundant liquid funds held in large corporate groups to flow into innovative and highly productive investments… .]

However, in order to increase the responsibility of a large company, it can be established only in the form of a wholly owned subsidiary with 100% stake, and the size of borrowing should not exceed 200% of its own capital.

You cannot invest as a company or affiliate with a total number of households.

In addition to investment, financial work is prohibited, and when CVC raises a fund, external funds can only be raised within 40% of the fund's amount.

However, there are also concerns that large conglomerates can erode the venture market and use it to pursue private interests.

[Jeonseongin / Hongik University Economics Professor: You CVC will be using affiliate funds to dominate the company and expand the cultivated following the company shares to the total family in a way to sell a total family dominance in]

the government of the Fair Trade Act Amendments Although it aims to pass through the year, labor is expected during the legislative process of the National Assembly.

(Video coverage: Jung Sung-hwa, Video editing: Jong-tae Kim, CG: Jun-ho Lee)