South Korea plans to open crowdfunding for small and medium-sized enterprises, or SMEs, to help them raise capital from individual investors, Yonhap News Agency reported June 5, citing Financial Services Commission Chairman Choi Jong-ku.
Choi said the government will submit a bill to allow SMEs to raise funds through crowdfunding, a fundraising technique that enables businesses to get capital from a large number of small investors, typically via the Internet and social media.
The government will also relax rules on crowdfunding brokers in a bid to encourage equity crowdfunding campaigns in the country, Choi added.
South Korea adopted the equity-style crowdfunding program in 2016. Currently, only venture startups are allowed to raise funds through crowdfunding.
