(1) Notwithstanding Article 18(2)5, a general holding company may own shares of a venture investment company defined in the Venture Investment Promotion Act (hereafter in this Article referred to as "venture investment company") or shares of a specialized new technology venture financing company defined in the Specialized Credit Finance Business Act (hereafter in this Article referred to as "specialized new technology venture financing company"). <Amended on Jun. 20, 2023>
(2) Where a general holding company owns shares of a venture investment company or a specialized new technology venture financing company pursuant to paragraph (1), it shall own the total number of shares issued by the venture investment company or the specialized new technology venture financing company; provided, this shall not apply in any of the following cases: <Amended on Jun. 20, 2023>
1. Where a general holding company owns less than the total number of shares issued by a venture investment company or a specialized new technology venture financing company, in the course of making the venture investment company or the specialized new technology venture financing company, which is not its affiliate, become its subsidiary, and it is within one year from the date of holding shares of the relevant company (limited to holding the total number of issued share within one year);
2. Where it is within one year from the date of owning less than the total number of issued shares of a venture investment company or a specialized new technology venture financing company, in the course of making the venture investment company or the specialized new technology venture financing company, which is its subsidiary, become a non-subsidiary (limited to disposing of all shares within one year from the date of owning less than the total number of issued shares).
(3) No venture investment company or specialized new technology venture financing company whose shares are owned by a general holding company pursuant to paragraph (1) shall commit any of the following acts; provided, subparagraphs 1 through 5 shall not apply in any case specified in the subparagraphs of paragraph (2): <Amended on Jun. 20, 2023>
1. Having debts exceeding twice the total capital;
2. Engaging in financial business or insurance business other than those prescribed in the subparagraphs of Article 37(1) of the Venture Investment Promotion Act, in cases of a venture investment company;
3. Engaging in financial business or insurance business other than those prescribed in Article 41(1)1 or 3 through 5 of the Specialized Credit Finance Business Act, in cases of a specialized new technology venture financing company;
4. Establishing any of the following investment associations (referring to a venture business investment association defined in subparagraph 11 of Article 2 of the Venture Investment Promotion Act and a new technology venture investment association defined in subparagraph 14-5 of Article 2 of the Specialized Credit Finance Business Act; hereafter in this Article, the same shall apply):a. An investment association in which an entity other than a member company of the business group to which the relevant company belongs has invested in excess of the ratio prescribed by Presidential Decree, within 40/100 of the total amount of investment;b. An investment association that has been invested by a company engaging in financial business or insurance business among member companies of the business group to which the relevant company belongs;c. An investment association in which a related party to the relevant company (limited to the same person and his or her relatives) has invested (limited to a business group in which the same person is a natural person);
5. Making any of the following investments (referring to any investment defined in the items of subparagraph 1 of Article 2 of the Venture Investment Promotion Act, and including investment through the execution of business of an investment association):a. Investing in a member company of the business group to which the relevant company belongs;b. Investing in a company invested by a related party to the relevant company (limited to the same person and his or her relatives);c. Investing in a member company of a business group subject to disclosure;d. Investing the amount exceeding 20/100 of the total assets (including the investment amount of all investment associations in operation) in an overseas enterprise;
6. Causing a related party (limited to the same person and his or her relatives) to the relevant company (including an investment association whose business is executed by the relevant company) or an affiliate invested by its related party, other than a holding company, etc., to acquire or own shares, bonds, etc. of a company in which the relevant company has invested.
(4) Where a general holding company owns shares of a venture investment company or of a specialized new technology venture financing company pursuant to paragraph (1), it shall report such fact to the Fair Trade Commission within four months from the date of acquisition or ownership of the shares, as determined and publicly notified by the Fair Trade Commission. <Amended on Jun. 20, 2023>
(5) A venture investment company or a specialized new technology venture financing company which is a subsidiary of a general holding company shall report to the Fair Trade Commission the current status of investment by itself or by all investment associations that it operates, the details of investors, etc., as determined and publicly notified by the Fair Trade Commission. <Amended on Jun. 20, 2023>