South Korea Offering Tax Incentives to Bolster Venture Capital

South Korea wants to offer new tax breaks to venture capitalists as part of a broader plan to make the nation a top global destination for start-up companies.

The plan would “drastically” revamp the stock option system for start-up companies and reduce their tax burdens to encourage talent recruitment, the Ministry of Small and Medium Enterprises and Startups said Thursday. The proposal is aimed at making the country “one of the four global venture powerhouses,” the government said.

• Under the plan, tax on the exercise of stock options would be exempt up to 50 million won ($43,000) from 30 million ...