Article 5(Organization, Registration, Change Registration, etc. of an Individual Investment Association) #
(1) “Persons prescribed by Ordinance of the Ministry of SMEs and Startups” in the former part of Article 12 (1) of the Act excluding its subparagraphs refers to those who meet any of the following subparagraphs:
1. An individual;
2. A technology holding company established for industry-academia-research cooperation under Article 36-2 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act;
3. An institution meeting any of the following items [limited to the case of investing in an individual investment association invested by a fund-of-funds for venture investment under Article 70 of the Act (hereinafter referred to as “fund of funds”)]:
(a) A university among private schools under Article 2 of the Private School Act and a university corporation that has established the university;
(b) The Industry-Academic Cooperation Foundation under Article 25 of the Industrial Education Enhancement and Industry-Academia-Research Cooperation Promotion Act;
(c) A public benefit corporation that is in charge of accounting for national and public university development funds among public benefit corporations that have obtained approval for establishment pursuant to Article 4 of the Act on the Establishment & Operation of Public Benefit Corporations;
(d) The Korea Institute of Science and Technology under Article 2 of the Korea Advanced Institute of Science and Technology Act, Gwangju Institute of Science and Technology under Article 2 of the Gwangju Institute of Science and Technology Act, Daegu Gyeongbuk Institute of Science and Technology under Article 2 of the Daegu Gyeongbuk Institute of Science and Technology Act or Ulsan Institute of Science and Technology under Article 2 of the Ulsan National Institute of Science and Technology Act;
4. A high-tech holding company established by a public research institute under Article 21-3 of the Technology Transfer and Commercialization Promotion Act;
5. A startup planner;
6. A company specializing in new technology startups under Article 2 (8) of the Act on Special Measures for the Promotion of Venture Businesses;
7. A corporation pursuant to subparagraphs 1 through 4 of Article 2 of the Corporate Tax Act, which invests in an individual investment association in which a startup planner becomes an operation partner of the association, provided that the total investment amount in the corporation shall not exceed 30 percent of the amount invested by the individual investment association;
8. The Creative Economy Innovation Center designated in conformity with Article 5-6 (1) of the Enforcement Decree of the Support for Small and Medium Enterprise Establishment Act;
9. The fund of funds (an association that has received a certain investment amount through a fund of funds);
10. A venture investment association that uses the funds of the association for investment in an individual investment association or other venture investment association, which meets the requirements determined and publicly notified by the Minister of SMEs and Startups;
(2) A person who intends to form and register an individual investment association pursuant to Article 12 (1) of the Act shall submit in advance an organization plan, including member recruitment and investment plans, to the Minister of SMEs and Startups
(3) The business executive member of an individual investment association that has been formed in conformity with the organization plan under paragraph (2) shall attach the following documents to an application for registration of the individual investment association in attached Form 3 and submit them to the Minister of SMEs and Startups within 14 days of the date of the general meeting for organization of association:
1. A copy of the association bylaws;
2. A list of association members;
3. A copy of the minutes of the general meeting for organization of association;
4. Documents proving the investment amount and investment performance of the members;
5. A balance statement of a bank (financial institution) account opened in the name of the association (referring to one issued two days before the date of submission);
6. A copy of the identification number certificate;
7. Documents proving that the custody and management of individual investment association properties under Article 15 (1) 1 of the Act has been entrusted to a trust company under Article 8 (7) of the Financial Investment Services and Capital Markets Act (applicable only to cases entrusted to a trust company);
8. Other documents determined and publicly notified by the Minister of SMEs and Startups;
(4) “Important matters prescribed by Ordinance of the Ministry of SMEs and Startups” in the latter part excluding each subparagraph of Article 12 (1) of the Act refers to any of the following matters:
1. Association bylaws;
2. Name and office location of an association;
3. Name and address of a business executive member;
4. Date of birth (business registration number), investment amount and number of shares for each member;
5. Duration of association;
(5) In the event of a change in any of the subparagraphs of paragraph (4), a business executive member of the individual investment association shall apply for registration of a change to the Minister of SMEs and Startups within 14 days of the date of change by attaching documents proving the change to an application for registration of a change of the individual investment association in attached Form 3.
(6) In addition to the matters stipulated in paragraphs (1) through (5), details regarding the confirmation of registration requirements and procedures for individual investment associations shall be determined and publicly notified by the Minister of SMEs and Startups.