A Study on Problems and Improvement in Operating Crowdfunding

Abstract

The study is designed to look at the problems and seek for measures to improve in operating crowdfunding. The study was based on literature resarch. Theses, law enactment and public hearing materials, materials presented by the Financial Supervisory Service and recently reported articles through media in relation to crowdfunding have been collected and analyzed. The study sorted problems and measures to improve in operating crowdfunding. As types of donation, reward and lending are not clearly stipulated on ｢Financial Investment Business and Capital Markets Act｣, problems caused from conflicting with｢Act on the Collection and Use of Donations｣, ｢Acton the Consumer Protection in the Electronic Commerce Transactions｣, and ｢Act on Registration of Credit Business and Protection of Finance Users｣, advertising restriction, resale restriction, setting of the upper limit on investment, complexity in the process of securities based crowdfunding, absence of information on issuer, lack of a wide range of restrictions and others can be presented. Measures were sought to solve such problems. Globally the volume of crowdfunding is getting bigger. Therefore, in order to make smooth operation of crowdfunding, such contents should be reflected to improvement in revising related laws in the future, which could lead to the growth of crowdfunding as well as smooth operation. In addition, it will be more spotlighted as a new and alternative financing method in entrepreneur.