Gov’t to launch market for startup stakes

[THE INVESTOR] The KRX Startup Market will be established this year to facilitate trading stakes in startups that raise money through crowdfunding, Financial Supervisory Commission Chairman Yim Jong-yong said on July 28.

“A dedicated market for trading stakes in companies (which used crowdfunding) will be established to enable (investors) to reclaim their money early,” Yim said at an event marking six months since the introduction of crowdfunding. 

Since crowdfunding was introduced, 4,445 individuals invested 10.2 billion won (US$9.05 million) in 64 ventures.

The financial authorities also plan to ease regulations prohibiting crowdfunding investors from selling their stakes within a year of making the initial investment.

The Financial Investment Services and Capital Markets Act will also be revised to allow crowdfunding agents and companies seeking crowdfunding to advertise.

By Choi He-suk (cheesuk@heraldcorp.com)