Are private KOSDAQ venture funds subject to the same rules as other general private funds?

Yes. A KOSDAQ venture fund set up privately is a general private collective investment vehicle under the FSCMA and follows the rules for general private funds, such as issuance only to qualified investors, reporting to the Financial Services Commission and investment restrictions.

On top of that, to receive the income deduction and the separate IPO allocation, it must also meet the venture company investment trust requirements in the Enforcement Decree of the Restriction of Special Taxation Act and the requirements in Korea Financial Investment Association regulations (a lock-up commitment of at least 15 days, a 1 year and 6 month redemption ban and so on). In other words, 'KOSDAQ venture fund' is less a separate type of fund than a status given to funds that meet certain requirements.