The Sources of Funding for Korean Venture Capital
It is generally accepted that the government, corporations and venture capital firms have contributed the major sources of funding in the Korean venture capital investment.
However, it is also important to note the diversifying sources of funding from pension funds and financial institutions in the market recently. First of all, the funding from pensions has increased gradually, due to the fact that the National Pension Act was revised in 2001 and the National Pension Corporation started to invest in venture capital funds in 2002. Thus, the increasing role of pension funds in Korean venture investments is becoming evident. Furthermore, the financial institutions such as banks and securities firms also have contributed to the diversified and stabilized sources of venture funding increasingly.
Consequently, it is safe to say that the diversifying sources of funds for venture capital investing deserve increasing attention for an understanding of the Korean venture capital market.