Venture Capital 2025

SOUTH KOREA Law and Practice Contributed by: Ohryung Lee, Joceline Park, Maria Chang and Hakrae Cho Bae, Kim & Lee LLC

China

North Korea

Seoul

South Korea

Japan

Contents 1. Trends p.503

1.1 VC Market p.503 1.2 Key Trends p.503 1.3 Key Industries p.503 2. Venture Capital Funds p.503

2.1 Fund Structure p.503 2.2 Fund Economics p.504 2.3 Fund Regulation p.504 2.4 Particularities p.504 3. Investments in Venture Capital Portfolio Companies p.505 3.1 Due Diligence p.505 3.2 Process p.505 3.3 Investment Structure p.505 3.4 Documentation p.505

3.5 Investor Safeguards p.505 3.6 Corporate Governance p.506 3.7 Contractual Protection p.506 4. Government Inducements p.507 4.1 Subsidy Programmes p.507 4.2 Tax Treatment p.507 4.3 Government Endorsement p.507 5. Employment Incentives p.508 5.1 General p.508 5.2 Securities p.508 5.3 Taxation of Instruments p.508 5.4 Implementation p.509 6. Exits p.509 6.1 Investor Exit Rights p.509 6.2 IPO Exits p.509 6.3 Pre-IPO Liquidity p.510 7. Regulation p.510 7.1 Securities Offerings p.510 7.2 Restrictions p.511

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