Do KOSDAQ venture funds also get an allocation when a KOSDAQ-listed company raises capital?

Yes. Korea Financial Investment Association regulations provide that when a KOSDAQ-listed company issues new shares through a public offering, at least 30% of the shares remaining after allocations to the employee stock ownership association and to shareholders with preemptive subscription rights must be allocated to venture company investment trusts.

When an underwriter takes up unsubscribed shares and offers them again to retail subscribers, at least 30% of those shares are likewise allocated to venture company investment trusts if the issuer is KOSDAQ-listed. However, the allocation may be skipped if the shares to be allocated are 5,000 shares or fewer (based on a par value of KRW 5,000) or the offering amount is KRW 100 million or less.