Why are KOSDAQ venture funds called 'policy funds'?

Because the government has built incentives into the system, namely tax benefits and a separate allocation of IPO shares, to channel money into the KOSDAQ market and venture companies.

In its January 2025 IPO reform measures, the Financial Services Commission referred to high-yield funds and KOSDAQ venture funds as 'policy funds' and explained that a certain proportion of offered shares had been allocated to them separately. Because these benefits serve policy goals, they come with sunset dates, and the requirements and ratios can change with policy direction.