Expanding Venture Funding and Lowering Legal Barriers... KOVA and LKB Pyeongsan Join Hands

[Financial News] KOVA is joining forces with the LKB Pyeongsan Financial Law Center to strengthen funding and legal support for venture companies and startups. The two sides will work together to increase the flow of private capital and statutory funds into the venture ecosystem while jointly responding to capital market reforms, including the introduction of KOSDAQ segments and tighter delisting requirements. The initiative is also aimed at easing the burdens early-stage companies face in attracting investment and pursuing growth by improving their access to legal services.

KOVA announced on the 30th that it had signed a memorandum of understanding with the LKB Pyeongsan Financial Law Center at its headquarters on developing the venture and startup ecosystem.
The two organizations will cooperate in three areas: promoting productive finance, jointly responding to legal issues related to the venture ecosystem, and providing legal support for early-stage startups while improving access to legal services.
They will first pursue joint initiatives to facilitate the flow of private capital and statutory funds into the venture ecosystem and identify legal and institutional reforms needed to promote productive finance. They also plan to jointly study legal and institutional issues involving venture investment, capital markets, and corporate governance, with the goal of translating their findings into policy and legislative improvements.
Capital market reform is a key issue. KOVA has maintained that the financial authorities' reform plans—including the introduction of the KOSDAQ segment system, tighter delisting requirements, and a general ban on dual listings—do not sufficiently reflect the characteristics of venture companies and the KOSDAQ market. It has also raised concerns that the views of industry participants have not been adequately collected.
Following the agreement, the two organizations plan to jointly respond to efforts to secure funding for innovative companies and revitalize the market for investment exits.

The legal support will focus on venture companies with limited access to relevant infrastructure. The organizations will provide legal information and advisory services tailored to each stage of growth, including business formation, investment attraction, contracts, and intellectual property rights. They will also jointly organize legal education programs and briefing sessions for venture companies and startups.
Song Byeong-jun, chairman of KOVA, said, "For venture companies and startups to build global competitiveness and grow into unicorns, smooth access to funding and a solid legal foundation are essential in addition to technological innovation." He added, "Through our partnership with the LKB Pyeongsan Financial Law Center, which has expertise in financial and corporate law, we will address the legal difficulties faced by companies in the field and take the lead in building an innovative finance ecosystem and realizing productive finance."
Jeon Hyeon-jeong, director of the LKB Pyeongsan Financial Law Center, emphasized, "Venture companies and startups are the future of South Korea. We must create an environment where they can take root easily." She continued, "This requires a comprehensive approach encompassing both finance and law." She added, "By combining KOVA's long-standing experience with the legal expertise of the LKB Pyeongsan Financial Law Center, we aim to expand the venture ecosystem."
Lee Gwang-beom, chair of the LKB Pyeongsan board, said, "Venture companies and startups that blaze new trails are the most reliable engines of growth for our economy." He added, "I hope today's agreement will serve as a strong pillar supporting venture companies so that they do not stop before legal and institutional barriers, and as a foundation for Korean ventures to reach the world."
After establishing detailed implementation plans for each area covered by the agreement, the two organizations plan to gradually launch joint seminars and customized legal support programs for startups.
[email protected] Kim Hyeon-cheol Reporter