Benefits Available to Venture Enterprise CEOs
Venture enterprise CEOs benefit from privileges including concurrent academic positions, preferential policy loans, expanded technology guarantee limits, and TIPS program access.
Benefits Available to Venture Enterprise CEOs
The benefits of venture enterprise certification extend far beyond tax reductions. From personal privileges enjoyed by the CEO to support spanning all aspects of business management, the status of a venture enterprise CEO differs markedly from that of an ordinary SME CEO. This article explains the benefits that venture enterprise CEOs can practically utilize, divided into personal benefits and corporate benefits.
1. Personal Benefits for the CEO
1-1. Permission for Concurrent Academic Positions
If the CEO or executive of a certified venture enterprise is a university professor, or if a university professor founds a venture enterprise, concurrent employment is permitted.
Legal basis: Special Measures Act for the Promotion of Venture Businesses, Article 16
Key details: - Faculty members (professors, associate professors, assistant professors) may directly found a venture enterprise or serve as CEO - Can operate through simple notification of concurrent employment without prior approval from the school corporation (varies by school regulations) - Concurrent employment period: generally within the term of office (renewable)
Practical significance: Cases of faculty startups, where professors commercialize their own research, are on the rise. Being able to run a venture enterprise while maintaining a professorship provides a powerful foundation for pursuing both research and commercialization simultaneously.
1-2. Military Service Deferment (CEO)
If appointed as CEO of a venture enterprise, those subject to military service obligations may apply for a deferment of induction.
Legal basis: Military Service Act, Article 60; Special Measures Act for Venture Businesses
Applicable conditions: - The person subject to military service must be registered as CEO of the venture enterprise - Must hold a valid venture enterprise confirmation certificate - The company must be actively operating
Caution: Military service deferment is not an exemption. If the person steps down from the CEO position or the venture enterprise certification is revoked, the grounds for deferment cease and an induction notice may be issued immediately.
1-3. Social Standing of the Founder
Venture enterprise CEOs receive social recognition as entrepreneurs contributing to national economic development. The title of venture enterprise CEO also enhances credibility with financial institutions, investment organizations, and government agencies.
2. Corporate-Level CEO Privileges
2-1. Preferential Policy Loans
Venture enterprises can access policy loans operated by the Ministry of SMEs and Startups, the Korea SMEs and Startups Agency, and other bodies on preferential terms.
Main policy loan types:
| Fund Type | Operating Agency | Features |
|---|---|---|
| Innovative Startup Commercialization Fund | Korea SMEs and Startups Agency | Priority selection for venture enterprises |
| Smart Factory Construction Fund | Korea SMEs and Startups Agency | For manufacturing venture enterprises |
| Export Enterprise Fund | Korea SMEs and Startups Agency | Support for overseas expansion |
| Startup Leap Package | Korea Startup Promotion Agency | Venture enterprises in years 3–7 |
Preferential conditions: - Interest rate preference: 0.5–1.5%p lower than for general SMEs - Expanded limit: 20–30% higher loan ceiling than for general companies - Fast-track screening: dedicated fast-track process for venture enterprises
2-2. Expanded Guarantee Limits at the Korea Technology Finance Corporation
The Korea Technology Finance Corporation (KIBO)Korea Technology Finance Corporation (KIBO)
Public institution providing technology guarantees and assessments to technology-based SMEs and venture enterprises. is an institution that provides guarantees to technology companies lacking collateral, improving their access to financing.
Preferential treatment for venture enterprises: - Guarantee limit: general SMEs KRW 3 billion → venture enterprises up to KRW 7 billion - Guarantee ratio: up to 95% (85% for general companies) - Guarantee fee discount: 0.2–0.5%p reduction
Bonus points in technology assessment: - Venture enterprise certification: additional points in technology assessment score - Additional preference for companies with R&D track records
Application method: Visit a KIBO branch or use the online application system (www.kibo.or.kr). Bring required documents including the venture enterprise confirmation certificate, business plan, and financial statements.
2-3. Korea Credit GuaranteeCredit Guarantee
System where KODIT guarantees enterprise credit to support bank loans. Fund Guarantees
The Korea Credit Guarantee Fund (KODIT) also provides preferential guarantee services to venture enterprises.
Venture enterprise-specific guarantee products: - Special guarantee for promising venture enterprises - Startup guarantee (for venture enterprises within 7 years of founding) - Innovative enterprise leap guarantee
Preferential details: - Raised guarantee limits - 20–30% discount on guarantee fees - Fast guarantee through simplified screening (for small-scale venture enterprises)
3. TIPS Program
What is TIPS?
TIPS (Tech Incubator Program for Startup) is a private investment-led technology startup support program. Angel investors and early-stage specialist VCs registered as TIPS operators discover promising startups, and the government provides matching R&D funding.
Structure of TIPS
Operator (angel investor/VC) → Investment (KRW 100–200 million)
↓
Government → R&D grant (up to KRW 500 million) + Commercialization fund (KRW 100 million) + Overseas marketing (KRW 100 million)
How Venture Enterprises Can Utilize TIPS
Step 1: Find a TIPS Operator - Check the list of operators on the Ministry of SMEs and Startups TIPS homepage - Attract investment from an operator (scale of KRW 100–200 million)
Step 2: Apply for TIPS Selection - Submit the TIPS selection application together with the operator - Evaluation of technology innovation, marketability, and team capability
Step 3: R&D Support After Selection - Upon selection, up to KRW 500 million in R&D funding over 2 years - Commercialization fund up to KRW 100 million - Overseas marketing support up to KRW 100 million
Step 4: Follow-Up Support After Graduation - TIPS graduates can apply for Post-TIPS - Up to KRW 1 billion in additional R&D support
Effects of TIPS Selection
Being selected for TIPS has effects beyond simple funding support.
- Enhanced investor credibility: TIPS-selected companies are perceived as government-vetted
- Easier follow-on fundraising: High success rate for Series A raises after TIPS selection
- Networking opportunities: Access to TIPS operator networks and alumni startup communities
4. Human Networks: Korea Venture Business Association
Benefits of Joining the Korea Venture Business Association
The Korea Venture Business Association (KOVA)Korea Venture Business Association (KOVA)
Association for protecting venture enterprise interests and developing the venture ecosystem. is Korea's largest venture organization for exchange and policy advocacy among venture enterprises.
Member benefits: - Priority support for venture enterprise certification - Opportunities to participate in policy advocacy - Venture networking events (several times a year) - Provision of information such as venture enterprise status reports - Participation in overseas VC/investor matching programs
How to join: - Online registration at the Korea Venture Business Association website (kova.or.kr) - Annual membership fee: varies by company size (small-scale: KRW 300,000–500,000)
Regional Venture Association Network
Regional branches of the Korea Venture Business Association operate nationwide.
- Seoul Venture Business Association
- Gyeonggi Venture Business Association
- Busan Venture Business Association (and other metropolitan branches)
- Networking programs tailored to regional characteristics
Startup Ecosystem Connections
As a venture enterprise CEO, you can participate in various startup ecosystem organizations.
| Organization | Role | How to Use |
|---|---|---|
| Startup Alliance | Startup ecosystem support | Demo days, networking events |
| Korea Startup Forum | Startup policy advocacy | Policy roundtable participation |
| Korea AcceleratorAccelerator (AC) Organizations providing investment, mentoring, education, and networking to early-stage startups, registered with MSS. Association |
Accelerator exchange | Investment matching |
| Korea Venture Capital Association | VC network | Fundraising networking |
5. Overseas Expansion Support
Korea Trade-Investment Promotion Agency (KOTRA) Support
Venture enterprises can prioritize access to KOTRA's overseas expansion support programs.
Key programs: - Global Startup Center: Support for overseas subsidiary establishment - K-Startup Center: Local office support in the US, Europe, Southeast Asia, and elsewhere - Overseas exhibition participation support: Over 50% of participation costs covered - Buyer discovery service: Database of promising overseas buyers provided
Ministry of SMEs and Startups Overseas Support
- Export voucher: Voucher usable for overseas marketing, certification, translation, etc.
- Global Startup School: Overseas startup education and local networking
- Overseas patent filing cost support: 70–80% of PCT filing costs covered
K-Global Program
An overseas expansion support program for ICT-sector venture enterprises operated by the Ministry of Science and ICT.
- Support for entry into global startup hubs such as Silicon Valley, Singapore, and Israel
- Local mentoring and networking support
- Opportunities to participate in investor demo days
6. Government Procurement Preferences
Venture Enterprise Priority Purchase Program
A system requiring public institutions to purchase venture enterprise products first when procuring goods or services.
Legal basis: Act on Promotion of Purchase of SME Products and Development of Markets
Key details: - A certain percentage of total public institution purchases must be SME products including venture enterprise products - Expanded scope for negotiated contracts (negotiated contracts possible below a certain amount) - Bonus points awarded in public bidding
How to use: Register with venture enterprise qualifications on the Public Procurement Service's KONEPS (g2b.go.kr), then participate in bidding. Enter the public institution negotiated contract market through KONEPS excellent product designation.
7. Capability Development Support for CEOs
Korea SME Training Institute Education
The Korea SME Training Institute (SBSC), under the Ministry of SMEs and Startups, provides management education for venture enterprise CEOs.
- Finance/accounting education (free or at cost)
- Marketing and overseas expansion education
- Leadership and organizational management education
Mentoring Programs
- Ministry of SMEs and Startups Mentoring Center: Successful venture CEOs participate as mentors
- Korea Startup Promotion Agency mentoring: Startup-specific mentor matching
- Korea Venture Business Association mentoring: Connection to industry-specific expert mentors
The benefits available to venture enterprise CEOs extend beyond the direct financial benefit of tax reductions, working across all aspects of company growth including diversification of financing channels, building human networks, and overseas expansion support. To maximize these benefits, it is important to maintain venture enterprise certification status and not miss the application deadlines for each support program. Maintaining ongoing relationships with the Korea Venture Business Association, the Korea SMEs and Startups Agency, TIPS operators, and others will help uncover more opportunities.