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Policy Tasks for the Clarification of the Future Role of Korean Venture Businesses and the Facilitation of the Venture Ecosystem

Author Deokhee Cho, Youngjoo Lee, Minwoong Ji, Jongwon Shin, Chang Yong Han Date 2016.02.01 Page 21
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‘The Korean start-up boom of 2000 was an exogenous event and an instance of capital market myopia. It was of an exogenous
nature in that Korea rode the wave of the worldwide information technology boom. Given that the development of the IT industry
provided the impetus for the start-up boom in Korea, it was a type of market myopia that is often observed in the initial days of a new industry.
In particular, one of the key drivers behind the start-up boom of 2000 was a drastic relaxation of the KOSDAQ registration requirements for start-ups in 1999, which opened the floodgates for domestic and overseas investors. The tech-heavy KOSDAQ with dramatically eased registration requirements attracted massive in-Policy Tasks for the Clarification of the Future Role of Korean Venture Businesses and the Facilitation of the Venture Ecosystem Deokhee Cho, Youngjoo Lee, Minwoong Ji, Jongwon Shin, Chang Yong Han flows of Korean investment as well as foreign capital, which was completely deregulated at the time. The influx of investments prompted a start-up boom on the KOSDAQ.