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Gov’t to give a tax break to firms listed on the Kosdaq

Nov 14,2017

Korea will extend a tax break to companies listed on the Kosdaq stock market and revamp listing rules to help small and medium-sized firms raise funds through the junior market, the country’s financial regulator said Monday.

Details of the tax incentive, including how much tax will be deducted, will be decided by the end of this year, the Financial Services Commission (FSC) said in a statement.

Also, the FSC will create a fund worth 10 trillion won ($8.9 billion) over the next three years to spur investment into start-ups.

The joint liability system for loans, which has been cited as a big obstacle for start-up entrepreneurs, will be overhauled. This system has taken flak for making it almost impossible for an entrepreneur to start a new business after failure and has created a risk-averse culture in the nation’s start-up ecosystem. YONHAP


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