The South Korean government will roll up sleeves to encourage a ‘second venture boom’ in a bid to boost dynamics of the nation’s economy.

March 1, 2014 Leave a comment

Gov’t to reignite 2nd venture boom

2014.02.25 16:18:58

The South Korean government will roll up sleeves to encourage a ‘second venture boom’ in a bid to boost dynamics of the nation’s economy.
In a move, the government is set to inject four trillion won ($3.7 billion) by 2017 and offer tax deduction on angel investment of up to 15 million won for three years. 
It also seeks to separate the KOSDAQ from the Korea Exchange and run it independently, and exclude finance-exclusive business groups and private equity funds (PEFs) from those subject to limitations on cross shareholdings to facilitate merger & acquisitions (M&As).
The government will relax controls on green belt regulations that stifled corporate investment, allowing the land use change into semi-industrial district and neighborhood commercial districts.
To relieve housing burden, the government will shift tax credit into tax deduction for monthly rent while providing more authority to tenants depending on locations so that they protect their premium on the lease of building worth several hundred millions won.
The government will also improve the treatment of temporary workers and reform pensions for public servants, soldiers and private schools.
The government finalized such three-year ‘Quantum Jump’ economic innovation plan under President Park Geun-hye’s supervision at the Presidential Office Tuesday.
The government expects the plan would transform Korea into an advanced economy three years later by raising the country’s growth potential back to the four percent range, employment-to-population ratio to 70 percent, and per-capita income to $40,000, thereby laying the economic groundwork for public happiness.
The three-year plan comprises three strategies of building a fundamentally strong economy, or bring normality to abnormality; building a dynamic and innovative economy, or creative economy, and; building a balanced economy between domestic and exports, or laying the foundation for the domestic economy, as well as nine plus one core tasks.

 

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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