Long ago, seashells and rice were used as currency. Fabrics, especially silk, were also used as a measure of monetary value for exchange and barter. Recently, virtual money Bitcoins have come into the spotlight and the value is sky-high. Experts, however, warn that the value of Bitcoins is ambiguous since they are vulnerable to hacking, which might lead to a huge loss. Moreover, the value of Bitcoins is highly volatile.

The valuation of financial assets is not determined by scholars’ research only. A great deal of effort by financial institutions, valuation institutions, and the government is required in order for any asset to become a credible way of valuation in the market. The Korean government is trying to build an intellectual property finance ecosystem that enables everyone with good ideas to make products and services based on an efficient financial system. Nurturing intellectual property valuation institutes and vitalizing intellectual property finance through a viable monetary policy are parts of the effort to realize the ‘Creative Economy,’ one of the goals of current government.

The existing intellectual property valuation system does not establish trust between suppliers and customers, thereby making technology transfers and deals difficult. The system also does not support the raising of capital from intangible intellectual property. Korea has a long way to go to build an intellectual property finance ecosystem. That is, it cannot be solved by just one institution only.

Last year, major technology valuation institutions - Korea Invention Promotion Association, Korea Technology Finance Corporation, Korea Institute of Science and Technology Information, and Korea Institute for Advancement of Technology – made a business agreement for improving the credibility of intellectual property and technology valuation.

The government shows that it is willing to fix problems of the existing system in a systematic way by building a credible and acceptable technology valuation system. The agreement is expected to achieve cooperation for building an integrated database for valuation and trading information among institutions. These measures will be helpful for preparing a credible infrastructure for a creative finance ecosystem for market participants. The financial market for intellectual property rights in Korea is expected to make a new leap forward if the government succeeds in developing financing intellectual property rights as well as to sharing the success with institutions.