Regulations will be eased to facilitate biotechnology startups and venture companies to join the secondary Korea Securities Dealers Automated Quotations (Kosdaq) market from the second half of this year. The Ministry of Science, ICT, and Future Planning held the second “Special Committee on Biotechnology” meeting at Gwacheon Government Complex on Wednesday and finalized a mid-term plan on nurturing local biotechnology industry.

Earlier this year, the Korean government created the Special Committee on Biotechnology to lead policies and programs in biotech industry and bolster related business. The special committee led by first-vice minister for science, ICT and future planning includes high-ranking government officials from ministries such as trade and education, and private-sector professionals.

The core decision from the special committee’s meeting was to relax the Kosdaq’s listing guidelines for biotech ventures. Companies in the category will be allowed to go public on the secondary market even if the largest shareholder’s stake is below the required 20 percent. The decision to allow bigger privileges to promising technology companies although they do not meet market membership standards is in negotiation with the stock exchange and financial authorities, officials said.

Financial authorities mulled allowing large shareholders in bio companies exception in stock resale and transfer clause if deemed necessary to raise funding for their ventures, but decided against it on fear of abuse for self-interests.

Upon the special access, a startup that applied for technology evaluation with at least two out of 11 certified technology appraising institutions and received at least one A grade standard can apply for listing review. Since 2005, 30 have been granted entries to the technology-laden bourse on technology review.

By Yong Hwan-jin and Lee Young-wook

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