Frequently Asked Questions

Venture certification is divided into 4 types (Investment, R&D, Innovative Growth, Pre-Venture), each with different requirements. Investment type requires 10%+ capital investment from VCs; R&D type requires an in-house research center and R&D spending ratio.

Venture certification is valid for 3 years. Renewal can be applied for before expiry, following the same review process.

Investment type is based on VC investment records. R&D type requires an in-house research center and R&D ratio. Innovative Growth type requires KIBO technology assessment. Pre-Venture targets enterprises less than 3 years old.

Apply online through the Venture Confirmation System (smes.go.kr/venturein). Investment type is reviewed by KVCA, while R&D and Innovative Growth types are reviewed by KIBO.

Investment type takes about 2-4 weeks (document review). R&D and Innovative Growth types take 4-8 weeks including technology assessment. Pre-Venture takes about 4-6 weeks.

Key tax benefits include: ① 50% corporate tax reduction (5 years), ② 75% acquisition tax reduction, ③ Property tax reduction (in cluster facilities), ④ Stock option tax exemption (up to 200M KRW/year).

The 50% corporate tax reduction applies for 5 years from the initial certification date, regardless of renewals.

Stock option exercise gains for venture enterprise employees are tax-exempt up to 200M KRW/year. Amounts exceeding this can be taxed as employment income or separate taxation (10-20%), whichever is more favorable.

Yes, direct or angel fund investments in venture enterprises qualify for income deductions: 100% for up to 30M KRW, 70% for 30-50M KRW, and 30% for over 50M KRW.

The deduction cannot exceed 50% of aggregate income. For example, with 100M KRW aggregate income, the maximum deduction is 50M KRW.

Investment confirmation certificates are issued by KBAN (Korea Business Angel Network, tax.kban.or.kr). This certificate must be submitted to the NTS when claiming deductions. Processing usually takes 2-4 weeks.

Basic required documents include: investment contract, proof of payment, shareholder registry, investee's venture certificate, and investor ID copy. Angel fund investments additionally require the fund registration certificate.

Secondary share purchases from existing shareholders, convertible bond/warrant-linked bond acquisitions, related party transactions, and investments in companies whose venture certification was revoked are excluded from deductions.

Capital gains tax is exempt when selling venture enterprise shares held for 3+ years. The company must have been venture-certified at the time of investment.

Formed with 1+ GP (General Partner) and up to 49 LPs (Limited Partners). GP must contribute at least 1% of total capital. Register with KBAN to conduct venture investment activities.

Yes, equity crowdfunding investments in venture enterprises are also eligible for income deductions. However, investment must be through a licensed online crowdfunding intermediary, and a separate investment confirmation process is required.

Only residents (Korean citizens and resident foreigners) with comprehensive income tax obligations in Korea are eligible. Non-residents are excluded. Resident foreigners must additionally submit a copy of their alien registration card.

Prepare IR materials and contact VCs directly, or leverage accelerators, demo days, and IR platforms. Key documents include business plan, financial statements, team introduction, and market analysis.

As of 2025, over 40,000 enterprises maintain venture certification. Exact numbers can be verified through the Venture Confirmation System as new certifications and expirations occur annually.