[Exclusive] Ruling Party to Push Coupang-Originated 'Differential Voting Rights'... Targeting March Approval

Coupang's 'Korean Stock Market Passing' Accelerates Discussions
No Major Disagreements Among Parties... Aiming for March Resolution

Song Gap-seok, Democratic Party of Korea lawmaker [Image source=Yonhap News]

[Asia Economy Reporter Koo Chae-eun] The "dual-class voting rights" system, which has attracted attention due to Coupang's listing on the U.S. stock market, is now highly likely to be applied domestically as well. Dual-class voting rights grant founders or executives up to 10 voting rights per share. As Coupang chose to list on the U.S. stock market because Korea lacks dual-class voting rights, legislative discussions have become active in the National Assembly.

On the 18th, Song Gap-seok, the ruling party spokesperson on the National Assembly's Industry, Trade, Small and Medium Enterprises and Venture Businesses Committee, said in a phone interview with Asia Economy, "There is a consensus within the party on the necessity," adding, "The goal is to pass it in the March National Assembly session." Kang Hoon-sik, chairman of the Small and Medium Venture Business Subcommittee, which is responsible for the bill, also stated in a phone interview, "There is a demand for fostering venture companies, so we will discuss it in next month's subcommittee meeting to achieve good results."

The Democratic Party has presented "Realizing the Four Major Venture Powers" as its second pledge in the 21st general election, promising to allow multiple voting rights for venture companies. Additionally, the People Power Party has introduced similar bills (proposed by lawmakers Lee Young, Kim Yong-pan, Chu Kyung-ho, and Kwon Sung-dong), and the government supports it, so there is little disagreement among the ruling and opposition parties.

The main content of the government bill to be reviewed is to allow unlisted venture companies to have two or more voting rights per share, up to a maximum of 10. If the founder's holding falls below 30% due to large-scale investment attraction, multiple voting rights shares can be issued for up to 10 years. After listing, to prevent abuse, a three-year grace period will be set before converting to common shares. Under the current Commercial Act, one voting right per share is granted based on the principle of shareholder equality, but this bill's core is to allow exceptions only for unlisted venture companies.