South Korea Plans to Include Crypto Companies in Startup Category to Enjoy Policy Benefits

On July 9, according to The Block, South Korea's Ministry of SMEs and Startups issued an announcement today, stating its plan to amend the current "Special Act on the Promotion of Venture Businesses," intending to allow virtual asset trading and brokerage service providers to register as "venture companies," thereby making them eligible for relevant government support policies.

In South Korea, a "venture company" refers to a small and medium-sized enterprise or startup that has been officially certified by the government. It must meet certain standards in terms of investment scale, R&D intensity, or technology assessment to obtain certification and enjoy preferential policies such as tax reductions and financing support.

Under the current regulations, since 2018, blockchain-based crypto asset trading and brokerage companies have been excluded from the scope of venture company certification, and are classified as restricted industries in the same category as bars and nightclubs.