Crowdfunding gains strength in Korea
[THE INVESTOR] Crowdfunding in South Korea is gaining strength as the authorities pledged more efforts to promote it, data showed on Jan. 24.
South Korea introduced the equity-style crowdfunding program a year ago, which allows early stage startups to raise capital from a large number of individuals investing relatively small amounts of money, typically via the internet.
“Crowdfunding is taking root as a new route of raising capital for startups and small and medium-sized enterprises,” the FSC’s chief Yim Jong-yong said at a ceremony to commemorate the first anniversary of the launch of the crowdfunding platform in the nation.
According to the FSC a total of 18 billion won (US$15.40 million) has been raised so far from 7,172 investors to fund 121 projects, which 46.4 percent of the 261 proposed ideas and on average each investor has provided 1.3 million won.