When and why were KOSDAQ venture funds created?

The venture company investment trust was created at the end of 1997, but it was rarely used because of a strict rule requiring at least 50% of fund assets to be invested in new shares of venture companies.

In January 2018, the Financial Services Commission announced in its 'Capital Market Innovation Measures through Revitalizing the KOSDAQ Market' that it would relax these investment rules and combine priority allocation of KOSDAQ IPO shares with an income deduction to revive the vehicle as the 'KOSDAQ venture fund'. The aim was to supply risk capital to innovative and venture companies and to broaden participation in the KOSDAQ market.