KOSDAQ Venture Funds
Is there a penalty if a fund is terminated early after receiving IPO shares?
Yes. Korea Financial Investment Association regulations treat it as improper book-building participation if a venture company investment trust that received IPO shares through book-building is terminated within 1 year of its establishment, or within 3 months of the date the shares were allocated (excluding the last 3 months of a trust whose contract term is 3 years or longer).
The same applies if a private venture company investment trust is redeemed within 1 year and 6 months of its initial establishment after receiving IPO shares. In such cases, the asset manager may face sanctions under the regulations, such as restrictions on participating in book-building.
This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.