Venture / Innobiz Company Certification

Common situations

Pick the question closest to your case: each one gives the conclusion first, then what changes it, the documents involved and the expected timeline.

1. Our company is less than a year old and has almost no revenue. Can we still get venture business certification in Korea?

   Short answer Yes, some types are open to you. The innovation growth type includes businesses in the process of being founded, and the R&D type's R&D-to-total-revenue ratio requirement does not apply to companies within 3 years of founding.

   • You have a corporate research institute or dedicated R&D department and are spending on R&D Consider the R&D type. If you are under 3 years old, the decision rests on the annual R&D expenditure threshold and the growth evaluation, without the ratio to total revenue.
   • You have no research unit but a clear technology and business model Apply under the innovation growth type, which evaluates technological excellence, product and service competitiveness, and market size and outlook.
   • You have received investment from a venture capital company or similar investor First calculate the investment amount and investment-to-capital ratio for the venture investment type.

   Documents

   Venture business confirmation application, business registration certificate and corporate register extract, business plan materials, intellectual property holdings and technology development records; for the R&D type, the recognition certificate for the corporate research institute or dedicated R&D department and the basis for R&D expenditure calculation

   Timeline

   Statutory: within 45 days of the request for the R&D and innovation growth types (one extension of up to 20 days if unavoidable) / In practice, depends on the on-site inspection schedule and supplementation requests

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2. We are a VC-backed startup. How much investment do we need to qualify for venture confirmation under the venture investment type in Korea?

   Short answer Total investment from investors specified by law — venture capital companies, venture investment funds, Korea Venture Investment Corp., professional individual investors and so on — must be KRW 50 million or more, and that total must be 10% or more of the company's capital. An evaluation by the venture business confirmation body is added on top.

   • Your investors are investment institutions or professional individual investors listed in the law Calculate the total investment and the ratio to capital from the investment agreements and payment evidence, then apply.
   • Your company is a corporate producer under the Framework Act on the Promotion of Cultural Industries (문화산업진흥 기본법) The investment-to-capital ratio threshold is lowered to 7% or more.
   • You have only received investment from acquaintances or ordinary individuals They may not count as recognized investors for the venture investment type, so also consider the R&D type or the innovation growth type.

   Documents

   Venture business confirmation application, investment agreements and evidence of payment, shareholder register, corporate register extract (to confirm capital), financial statements

   Timeline

   Statutory: within 30 days of the request for the venture investment type (one extension of up to 20 days if unavoidable) / In practice, depends on whether investment evidence needs supplementation

3. Can we get venture business confirmation under the R&D type without a corporate research institute?

   Short answer The R&D type requires a corporate research institute or dedicated R&D department (for cultural industries, a corporate creative research institute or dedicated creative department), so recognition must come first. To apply without a research unit, consider the innovation growth type.

   • You can secure research staff and a dedicated space First apply for recognition of a corporate research institute or dedicated R&D department, then apply for venture business confirmation under the R&D type once recognized.
   • You cannot set up a research unit right now Prepare to be evaluated on technological innovation and business growth under the innovation growth type.

   Documents

   Recognition certificate for the corporate research institute or dedicated R&D department, basis for R&D expenditure calculation, financial statements and annual total revenue data, venture business confirmation application

   Timeline

   In practice, the research institute recognition period comes first; after that, venture business confirmation is within 45 days of the request (statutory)

4. How long does venture business certification in Korea take, from application to receiving the certificate?

   Short answer The head of the confirmation body must notify the result within 30 days of the request for the venture investment type and within 45 days for the R&D and innovation growth types, and may extend this only once, by up to 20 days, if unavoidable.

   • Your documents are complete and no supplementation is requested Document review and on-site inspection → deliberation by the Venture Business Confirmation Committee → certificate issuance all proceed within the statutory period.
   • Additional materials are requested during the on-site inspection The schedule extends by the time it takes to submit them, so organize your evidence before applying.

   Documents

   Venture business confirmation application, proof of the relevant type, business registration certificate and corporate register extract, financial statements

   Timeline

   Statutory: 30 days (venture investment type) / 45 days (R&D and innovation growth types), one extension of up to 20 days possible / In practice, document preparation time is added

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5. I'm looking into the cost of venture business certification in Korea. What should we prepare before applying?

   Short answer The head of the confirmation body may charge the applicant for confirmation costs, and the calculation and payment method is set by notice of the Minister of SMEs and Startups, so check the confirmation body's announcement at the time you apply. What you need to prepare: choose the type, check the quantitative requirements for that type, and organize the supporting documents.

   • You have not chosen a type yet Pick the right one of the three types based on whether you have raised investment, whether you have a research unit, and when you were founded.
   • Your type is decided Gather investment evidence or R&D expenditure calculations and business plan materials, then complete the application.

   Documents

   Venture business confirmation application, proof of the relevant type, financial statements and annual total revenue data, intellectual property holdings and technology development records

   Timeline

   Statutory: within 30 or 45 days of the request / In practice, depends on document preparation and the on-site inspection schedule

6. Our venture business confirmation certificate expires soon. How do we renew it?

   Short answer The certificate is valid for 3 years from the date of confirmation and there is no automatic renewal, so you must apply for confirmation again (re-confirmation) before it expires. Once it expires, venture business tax relief may not apply from the tax year that includes the expiry date.

   • You still meet the requirements of the type you were first confirmed under Apply for re-confirmation under the same type with your latest financial statements and evidence.
   • Your investment ratio or R&D expenditure position has changed Consider applying under a different type that fits your current situation.

   Documents

   Venture business confirmation application, existing confirmation certificate, latest financial statements, proof of the relevant type

   Timeline

   Statutory: re-confirmation is also within 30 or 45 days of the request / In practice, apply with enough margin for deliberation to finish before the expiry date

7. If we suspend business or no longer meet the requirements after venture confirmation, will the confirmation be cancelled?

   Short answer It can be. Grounds for cancellation include no longer meeting the venture business requirements; not carrying on business activity for 6 months due to suspension, closure, bankruptcy and the like; and the representative or largest shareholder misappropriating or concealing company assets and causing harm to interested parties. If confirmation was obtained by false or fraudulent means, it must be cancelled.

   • You are pausing operations temporarily Manage the schedule so the period without business activity does not reach 6 months.
   • Cancellation proceedings have started A hearing is held before cancellation, so prepare evidence that you still meet the requirements and a written opinion.

   Documents

   Financial statements, evidence of investment and R&D status, evidence of business operations, written opinion for the hearing

   Timeline

   In practice, whether cancellation occurs depends on the confirmation body's hearing and deliberation schedule

8. We already have venture business certification. Do we need to apply for Innobiz certification separately?

   Short answer Yes. The two are separate systems with different governing laws and procedures, so if you want Innobiz, you apply for it separately. Venture business confirmation is a confirmation under the Special Act on the Promotion of Venture Businesses (벤처기업육성에 관한 특별법), while Innobiz is selection as a technology-innovative SME under the Act on the Promotion of Technology Innovation of SMEs.

   • You want to showcase technology innovation results and commercialization capability Apply for the Innobiz (technology-innovative SME) selection evaluation according to that year's announcement.
   • Your strengths are management innovation activities and results Consider Mainbiz (management-innovative SME) selection.

   Documents

   Innobiz selection application documents (per that year's announcement), business registration certificate and corporate register extract, financial statements, technology development records and intellectual property materials

   Timeline

   In practice, the selection schedule and validity period are set by announcements and notices of the Ministry of SMEs and Startups rather than by statute, so follow that year's announcement

9. How does the Innobiz certification selection process work in Korea, and what is evaluated?

   Short answer The Minister of SMEs and Startups announces the selection procedure and evaluation criteria, conducts the evaluation, and selects companies with strong results as technology-innovative SMEs. The criteria include technology innovation results and technology commercialization capability.

   • A selection announcement has been published Check the application requirements and evaluation indicators in the announcement, then prepare and file the application documents.
   • You want to know the evaluation costs The Minister may require companies seeking selection to bear the evaluation costs, with calculation and payment set by notice, so check that year's notice.

   Documents

   Selection application (announcement form), business registration certificate and corporate register extract, financial statements, technology development and intellectual property materials, technology commercialization records

   Timeline

   In practice, depends on the evaluation schedule set in the announcement

10. Should our company apply for Innobiz or Mainbiz in Korea?

    Short answer Both are selection systems under the Act on the Promotion of Technology Innovation of SMEs, but the evaluation focus differs. If your record centers on technology development and commercialization, Innobiz (technology-innovative) fits; if it centers on improving how the business is managed and the results, Mainbiz (management-innovative) fits.

    • You are a manufacturing or technology company with a record of patents, technology development and productization Organize your materials to the Innobiz criteria (technology innovation results and commercialization capability).
    • You are a company, such as in services or distribution, whose strength is management innovation Prepare to the Mainbiz criteria (management innovation activities and results).

    Documents

    Business registration certificate and corporate register extract, financial statements, technology development or management innovation records, that year's announcement forms

    Timeline

    In practice, depends on each system's announcement schedule

11. If we hire an administrative agent for venture business certification in Korea, what exactly do they handle?

    Short answer We handle type assessment and requirement pre-checks, preparation of the application and supporting documents, filing with the confirmation body, preparation of on-site inspection materials and supplementation responses, and validity management and re-confirmation. Whether the requirements are met and how technology and growth are evaluated is decided by the confirmation body and the Venture Business Confirmation Committee.

    • You are applying for venture business confirmation for the first time We determine which of the three types fits your company, tell you which evidence is missing, then prepare and file the application.
    • You need investment fundraising, R&D planning or tax filings These are not administrative agent services, so they proceed separately with the relevant specialists, and our office focuses on the confirmation application documents.

    Documents

    Business registration certificate and corporate register extract, financial statements, investment evidence or research institute recognition certificate, business plan materials

    Timeline

    Statutory: within 30 or 45 days of the request / In practice, document preparation time is added

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