What is a business development collective investment vehicle (BDC)?

A BDC is a listed public fund that invests 60% or more of its total assets in 'primary investment target companies', such as unlisted venture and innovative companies and companies listed on KONEX or KOSDAQ.

Following amendments to the related subordinate regulations, the scheme took effect on March 17, 2026, and BDC securities are listed and traded on the KOSDAQ market. Separate investment rules apply, such as a requirement to invest at least 10% of total assets in safe assets like government and public bonds or cash.