Financial Knowledge

KOSDAQ Venture Funds

This section summarizes the legal requirements and asset composition of KOSDAQ venture funds (venture company investment trusts), how priority allocation of KOSDAQ IPO shares works, the income deduction and its recovery, public and private fund structures and redemption limits, and the main risks. Private KOSDAQ venture funds are open only to qualified investors. Requirements, allocation ratios and tax benefits change frequently as laws and regulations are amended, so be sure to check the latest laws and the fund's collective investment rules and prospectus or product description before investing.

La versione italiana di questa pagina è in preparazione. Fino ad allora il testo è mostrato in inglese.

54 questions · Last updated

  1. 01What is the legal name of a KOSDAQ venture fund?
  2. 02When and why were KOSDAQ venture funds created?
  3. 03How did the market respond when KOSDAQ venture funds were first launched?
  4. 04How much is invested in KOSDAQ venture funds overall?
  5. 05Why are KOSDAQ venture funds called 'policy funds'?
  6. 06How must a KOSDAQ venture fund's assets be composed?
  7. 07What kinds of investment count toward the '15% in new venture shares' requirement?
  8. 08What is the difference between new shares and existing shares, and why does it matter for KOSDAQ venture funds?
  9. 09What is a company 'within 7 years of losing venture status'?
  10. 10Does a fund have to meet the investment ratio requirements as soon as it is set up?
  11. 11If the fund loses money and the investment ratio falls, does it fail the requirements?
  12. 12Can a KOSDAQ venture fund hold convertible bonds (CBs) or bonds with warrants (BWs) issued by venture companies?
  13. 13Do KOSDAQ venture funds also invest in venture companies before they list (pre-IPO)?
  14. 14What is a venture company?
  15. 15Who confirms venture company status, and how long is it valid?
  16. 16How are IPO shares divided among KOSDAQ venture funds?
  17. 17Why do public KOSDAQ venture funds get a higher weighting in allocation?
  18. 18What happens to the priority allocation if demand from KOSDAQ venture funds is insufficient?
  19. 19Do KOSDAQ venture funds also get priority allocation in KOSPI IPOs?
  20. 20Do KOSDAQ venture funds also get an allocation when a KOSDAQ-listed company raises capital?
  21. 21Can a KOSDAQ venture fund that is less than 1 year old receive priority allocation?
  22. 22Does receiving KOSDAQ IPO shares also help a fund meet the new share requirement?
  23. 23Why must a KOSDAQ venture fund make a 15-day lock-up commitment to receive priority allocation?
  24. 24Why do private KOSDAQ venture funds have a 1 year and 6 month redemption ban?
  25. 25Is there a penalty if a fund is terminated early after receiving IPO shares?
  26. 26What must an asset manager commit to when a KOSDAQ venture fund receives IPO shares?
  27. 27Was the priority allocation ratio always 30%?
  28. 28How long will the priority allocation benefit last?
  29. 29Does priority allocation of IPO shares guarantee fund returns?
  30. 30Can I see the KOSDAQ venture fund allocation in IPO disclosures?
  31. 31How do ordinary IPO funds differ from KOSDAQ venture funds?
  32. 32How does the separate IPO allocation for high-yield funds differ from that for KOSDAQ venture funds?
  33. 33Who can claim the KOSDAQ venture fund income deduction? Can a corporation?
  34. 34Can I get the income deduction if I acquire KOSDAQ venture fund beneficiary certificates from someone else?
  35. 35Can a privately offered KOSDAQ venture fund qualify for the income deduction?
  36. 36How do I apply for the KOSDAQ venture fund income deduction?
  37. 37What should I do if I want to take the deduction in a different year?
  38. 38If I redeem within 3 years and the deduction is recovered, how is the tax collected?
  39. 39Until when does the KOSDAQ venture fund income deduction apply?
  40. 40Is income received from a KOSDAQ venture fund also taxed?
  41. 41How do public and private KOSDAQ venture funds differ?
  42. 42Who can invest in a private KOSDAQ venture fund, and how?
  43. 43Are private KOSDAQ venture funds subject to the same rules as other general private funds?
  44. 44Why do private KOSDAQ venture funds often restrict redemptions?
  45. 45Do KOSDAQ venture funds have a maturity?
  46. 46How is the net asset value of a KOSDAQ venture fund with many unlisted shares determined?
  47. 47What are the risks of investing in a KOSDAQ venture fund?
  48. 48How can I check the fees and charges of a KOSDAQ venture fund?
  49. 49If I invest in a private KOSDAQ venture fund, how can I find out how it is being managed?
  50. 50How do business development collective investment vehicles (BDCs) differ from KOSDAQ venture funds?
  51. 51How do venture investment associations and start-up and venture private funds differ from KOSDAQ venture funds?
  52. 52How are large securities firms' risk capital obligations related to KOSDAQ venture funds?
  53. 53Are KOSDAQ venture funds also used in the public-participation National Growth Fund?
  54. 54What should I check before investing in a KOSDAQ venture fund?

General financial information, not investment advice. Rules and tax rates change; please check the latest guidance from the source institution.