South Korea will restrict venture capital firms from demanding early investment recovery from venture companies and startups without justifiable grounds. The revision to the Act on Special Measures for the Promotion of Venture Investment, which cleared a Cabinet meeting on the 22nd, also limits excessive refixing clauses (terms that reset share-conversion prices) after failed initial public offerings (IPOs). It establishes a legal basis to invalidate specific unfair contract terms and impose administrative sanctions, while prohibiting major shareholders and others at venture capital firms from exchanging money or entertainment to exert undue influence. The revision is due to be promulgated on the 29th and take effect on March 30 next year.