Distribution of Standard Investment Agreement Form to IT Venture Business

Standard agreement form for venture investment announced and it is expected to increase Investment criteria and transparency.

Ministry of Information and Communication (MIC) prepared a standard agreement making up for the weak points of existing investment agreement of venture capital business world, It is distributed to the members of IT Consultation of Investment societies for the settlement of constructive investment circumstance.

As a recommendation, it includes major shareholders, CEOs and other concerned as contract parties. Additionally it strengthens protection function for investors by adding the statement of interested party and guarantee clauses.

If a major person interested sales more than 10% of company shares, he/she needs investors’ consent in advance and gives them claim rights of common sales. Beside, other clauses added to prevent moral hazard; continual works of the person interested, prevention of purchasing the share of rival business etc.

Tae-Han Kim freewill@donga.com