Finance minister Choo Kyung-ho has vowed to strengthen policy efforts to facilitate the flow of private capital into investment through venture firms.

Choo made the remark on Friday during an emergency government meeting of economy-related ministers, saying investment toward venture companies is contracting due to worsened economic conditions both at home and abroad.

He said the government will lay the groundwork to create a private venture parent fund to further expand the inflow of private capital into venture investment which is heavily dependent on the government.

The minister said domestic firms that invest in the private parent fund will receive a five-percent tax deduction on its investment while individual investors will receive a ten-percent tax return on the amount they invest.