Establishment of VCC in Second Half of This Year
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The Ministry of SMEs and Startups announced on the 30th that the Singaporean subsidiary of Korea Venture Investment has obtained the main license for Capital Market Service (CMS) for the management of the Variable Capital Company (VCC) fund from the Singapore Monetary Authority (MAS).
VCC refers to the form of a Singaporean investment fund-only corporation that can have multiple sub-fund under one VCC. Each sub-fund can be operated independently.
The acquisition of the license is the first case of Korean venture investment’s approval of overseas asset management. As a result, the Singaporean subsidiary of Korea Venture Investment has secured an institutional foundation for creating and managing funds as a fund management company in the region.
The Ministry of SMEs and Startups and Korea Venture Investment established a local subsidiary of Korea Venture Investment in Singapore in April last year, and pushed for the Singapore Monetary Authority (MAS) to acquire a fund management license. Last month, the fund management license was approved, and this time, it acquired the main license.
With this license acquisition, the two institutions plan to carry out follow-up procedures such as establishing a VCC and creating a sub-fund in order to create a K-VCC in the second half of this year.
We will strengthen the connection between global investors and domestic ventures and startups through the acquisition of licenses, and expand opportunities for venture capital to advance overseas, said Noh Yong-seok, the first vice minister of the Ministry of SMEs and Startups. “We will foster K-Global Venture Fund as a key platform for Asian venture investment so that promising startups can leap into the global market using global capital and networks as a stepping stone.”
