What is the difference between new shares and existing shares, and why does it matter for KOSDAQ venture funds?

New shares are newly issued by a company, so the money invested goes to the company and funds its growth; existing shares are already held by shareholders, so when you buy them the money goes to the selling shareholder.

The Enforcement Decree counts both subscriptions for new shares and purchases of existing shares toward the 50% requirement for venture companies and the like, but the 15% requirement can be met only through investments such as subscribing for new shares of venture companies. This can be seen as a way to make sure fresh capital reaches venture companies.