How do public and private KOSDAQ venture funds differ?

The Financial Services Commission explained that public KOSDAQ venture funds are open to anyone but subject to strict diversification, disclosure and other investor protection rules, giving them an advantage in managing highly liquid assets such as listed shares, including IPO shares.

Private KOSDAQ venture funds are open only to qualified investors and were seen as having an advantage in step-by-step, relationship-based investments such as CBs and BWs of unlisted venture companies. Different rules also apply, such as allocation weightings (110% for public funds, 100% for private funds) and the 1 year and 6 month redemption ban for private funds.