[Background]

- Recently, concerns have been raised about excessive joint liability penalties, such as imposing joint responsibility for repayment of investment funds on startup founders and placing a lien on their personal assets.
- A regulation prohibiting third-party joint liability is being introduced for startup planners and individual investment partnerships (when the managing partner is the startup planner) to establish a sound market order.
- The same regulatory amendment is currently being implemented for venture investment companies and venture investment partnerships ('April 13, 2023), and considering the fundraising situation of smaller startup planners and individual investment partnerships compared to venture investment companies, it will be gradually introduced.

[Regulatory Content]

- The amendment to the Enforcement Decree of the Venture Investment Promotion Act adds a provision that the obligations that should be borne by the invested company must be shifted to a representative, largest shareholder, or third party. Exceptions are provided for cases of intentional or gross negligence in investment contract violations.