South Korea to expand IP financial investment market to 1.3 trW by 2024


South Korea to expand IP financial investment market to 1.3 trW by 2024



South Korea aims to grow its intellectual property financial investment market to 1.3 trillion won ($ 1.08 billion) by 2024 to help companies cope with liquidity issues triggered by the pandemic coronavirus, the national intellectual property office said on July 2.

The Korean Intellectual Property Office announced 14 specific tasks under four pillars that would establish platforms for individuals and businesses to directly invest in intellectual property and benefit from royalties, sales and even lawsuits.

Bringing quality intellectual property rights to market, producing a range of investment items that can meet the needs of different investors, bringing capital to investment products and building platforms tailored to the market have been listed as the four pillars.

Sejong Government Complex, where the Korea Intellectual Property Office is located. (KIPO)

To inject quality intellectual property rights into the market, KIPO said it would be crucial to provide investment-worthy patent data and information, recommended by patent examiners or related to projects managed by the state. Patent design support would be provided to universities and laboratories to encourage profit-oriented management of patent projects.

Laws and systems related to patent monetization will be improved to allow funds, and not just corporations, to hold patents directly. Support for funds that would apply for patents abroad would be expanded to help secure rights abroad.

State funding would be used to launch a special fund only for investments in intellectual property to create various options for investors. The creation of low-risk funds that profit from patent royalties and high-risk types based on potential technology transfers and lawsuits would also be supported.

Investments that use crowdfunding to help individuals invest directly in intellectual property and testing of converting intellectual property into securities would be continued.

To encourage the inflow of capital into products and the market, the government plans to adopt several financial benefits for investors.

The same tax benefit for venture capital investments would apply to IP investments, while annual patent registration fees would be reduced for those held by individuals or trust companies.

KIPO announced that it will launch a centralized call center to help individuals receive appropriate advice on IP investments to create a favorable market and investor environment. Rules related to patent litigation will also be revised to protect patent holders and the efficiency of the dispute resolution system will be strengthened to help small and medium-sized enterprises negotiate licenses and profit from patents without financial risk. important.

State-run financial institutions would add IP courses to their patent attorney programs to encourage subject matter experts and professionals. In order to establish a global network, the government plans to attract patent brokerage firms and global investment firms to the domestic market.

According to KIPO, it plans to create 20,000 new jobs thanks to its objectives of expanding the market for financial investments in intellectual property.

Due to the latest pandemic, local businesses faced increased liquidity risks and problems with technology leakage, the patent office noted. It would be important to provide financial support to tech companies that lack solid collateral, he added.

Korea’s intellectual property trade balance remained in the red for some time, with the situation calling for an overhaul. The country’s intellectual property trade deficit stood at $ 800 million last year, up from about $ 1.7 billion in 2017, according to data provided by KIPO.

The current administration of Moon Jae-in actively pursues policies related to IP financing, and the local IP market has grown rapidly in recent years.

According to KIPO, Asia’s fourth-largest economy offers a favorable environment for investment in intellectual property due to the approximately 220,000 patent filings it receives on average each year, active investment in research and development and ‘a constant expansion of the financial market linked to intellectual property.

“Intellectual property is the new kind of asset in the 21st century that allows anyone with a new idea to acquire it,” said KIPO Commissioner Park Won-joo.

“KIPO will provide full support to individuals and businesses who own IP to succeed through smoother financing,” he added.

By Jung Min-kyung ([email protected])


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