SEOUL-- South Korea said Thursday it plans to increase tax incentives for venture firms and support their drive for mergers and acquisitions (M&As) as part of efforts to nurture innovative startups.

Under a vision to become one of the world's major venture powerhouses, the government plans to support venture firms' investment and reinvigorate the M&A market, according to the Ministry of SMEs and Startups.

In a related move, the government plans to overhaul stock option schemes for startups and ease burdens of their tax payments to encourage more talented people to work in venture companies.

The ministry said it will raise the ceiling of tax exemption to 50 million won (US$42,800) from the current 30 million won when entrepreneurs exercise their stock options.

The government plans to create a 1 trillion-won global venture fund in an effort to help more startups better raise capital from overseas and support their overseas push.

The country also seeks to reinvigorate the M&A market to help startups expand their presence. It will also increase tax incentives for venture companies seeking M&As.

Currently, local venture firms are raising capital mainly through initial public offerings.

Source: Yonhap News Agency