Securities-related institutions including Korea Exchange, Korea Securities Finance Corp, Korea Securities Depository and Koscom plan to create a secondary fund worth about 1 trillion won over the next 3 years to help vitalise the exit market for venture companies.

On Tuesday, the four institutions decided to push ahead with creating a secondary fund to help vitalise the risk capital exit market.

The 4 institutions plan to secure resources through internal resolutions and invest a combined total of about 1 trillion won in the fund over the next 3 years.

The fund is designed to support the government's policy of strengthening productive finance and to supply funds to the venture industry, which is facing a lack of liquidity.

The exchange plans to use it to build a foundation for the sustainable growth of innovative venture companies and improve conditions for cashing out in the venture ecosystem.

Including the previously announced joint venture secondary investment by the securities industry, funds supplied to the venture exit market through the financial investment industry are expected to expand to about 2 trillion won.

In the venture investment market, a smooth environment for recouping investments allows early investors to recover funds and reinvest in new companies, creating a virtuous cycle. The creation of this secondary fund is also expected to focus on supporting the flow of funds by growth stage for venture companies.