Venture Enterprise Glossary

Key terms related to Korea's venture enterprise system, explained clearly.

Acquisition Tax Reduction

Acquisition Tax Reduction

Tax Benefits

75% reduction in acquisition tax when venture enterprises acquire real estate for direct use.

Capital Gains Tax Exemption

Capital Gains Tax Exemption

Tax Benefits

Exemption from capital gains tax when selling venture enterprise shares held for 3+ years.

Corporate Tax Reduction

Corporate Tax Reduction

Tax Benefits

Venture-certified enterprises receive a 50% reduction in corporate (or income) tax for 5 years from…

Income Tax Deduction

Income Tax Deduction

Tax Benefits

Tax deduction system for venture enterprise investment: 100% for up to 30M KRW, 70% for 30-50M KRW,…

Professional Angel Investor

Professional Angel Investor

Tax Benefits

Individual investor registered with KBAN with venture investment track record, potentially eligible…

Property Tax Reduction

Property Tax Reduction

Tax Benefits

Property tax reduction for venture enterprises located in venture cluster facilities.

Separate Taxation

Separate Taxation

Tax Benefits

Taxation method that separates income from aggregate taxation. Stock option exercise gains can be s…

Special Tax Treatment Control Law (STTCL)

Special Tax Treatment Control Law (STTCL)

Tax Benefits

Abbreviation for the Special Tax Treatment Control Law. The legal basis for venture tax benefits (A…

Stock Option

Stock Option

Tax Benefits

Stock purchase rights granted to venture enterprise employees. Up to 200M KRW/year in exercise gain…

Tax Exemption

Tax Exemption

Tax Benefits

Tax not being imposed. Includes stock option exercise gains up to 200M KRW/year and venture investm…