The National Policy Committee passed nine financial laws. One of them was the establishment of an online small investment agent. (image: Korea Bizwire)
SEOUL, May 1 (Korea Bizwire) — An online crowd funding agency targeting small investors will be established in Korea.
The National Policy Committee passed nine financial laws on April 30, and one of them was the establishment of an online small investment agent which enables a company to raise a maximum of 700 million won (US$ 650,000) per year through crowd funding.
An individual investor can invest up to 20 million won (US$ 18,550) every year.
Regulations on private equity funds will be loosened in terms of entry, establishment, management and sale. However, investors in private equity funds will be limited to a certain qualified group.
Public offering of bonds with detachable warrants will be possible, while the 1 billion won requirement as the minimum capital to establish a corporation type investment fund will be abolished.
Registration for and management of loan companies will be redirected to the Financial Services Commission from local governing bodies.
TV commercials for loan companies will only be able to air from 7 AM to 9 AM and from 1 PM to 10 PM on weekdays, and from 7 AM to 10 PM on weekends and holidays.
Majority shareholders who are sentenced to more than one year in prison will have restricted voting rights.
By Kevin Lee (kevinlee@koreabizwire.com)
