Yoon Jae-ok: "Hope Multiple Voting Rights Settle Well and Venture Companies Grow"

Expressing Gratitude to Democratic Party Lawmakers Who Worked Hard for the Passage of the Bill

Yoon Jae-ok, floor leader of the People Power Party, said on the 8th regarding the 'Multiple Voting Rights for Unlisted Venture and Startup Companies' bill, "I hope the system settles well and becomes an opportunity for actual venture companies to become more active and grow."

On the same day, Yoon attended the 'Field Meeting with the Venture Business Community and Political Parties' held at a startup office building in Mapo-gu, Seoul, and stated, "Passing the law related to multiple voting rights was not easy."

On the 8th, at the Mapo-gu Front1 startup support center, Yoon Jae-ok, the floor leader of the People Power Party, is speaking at the on-site meeting of the venture business community, political parties, and government officials for the establishment of multiple voting rights. From the party, Floor Leader Yoon and Han Mu-gyeong, the secretary of the National Assembly's Industry, Trade, and SMEs Committee, attended, and from the government, Lee Young, the Minister of SMEs and Startups, participated. (Photo by Yonhap News)

The National Assembly passed the 'Partial Amendment to the Special Measures for the Promotion of Venture Businesses Act,' which implements the multiple voting rights stock system, in the plenary session last April. Through this, unlisted venture and startup founders can now issue shares with up to 10 voting rights per share. Multiple voting rights stocks help venture and startup founders operate their companies stably, as they are likely to face threats to management control if their equity is diluted during investment attraction.

Floor leader Yoon explained, "I have seen many cases where startups stopped their business or handed over their companies before they could even bloom," adding, "I thought we needed to prevent this even a little."

He also expressed gratitude to the Democratic Party lawmakers who helped pass the bill. Yoon said, "Not all Democratic Party lawmakers opposed it; opinions were divided," and added, "I am thankful to the Democratic Party lawmakers who helped pass the bill."

At the meeting, Lee Young, Minister of SMEs and Startups, commented, "Venture companies can now boldly receive investments without concerns about management instability," and praised, "This is a significant advancement for venture companies."

Han Mu-kyung, the ruling party's secretary of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises and Startups Committee and a People Power Party lawmaker, emphasized, "I understand Minister Lee initially proposed this bill, and now it has finally borne fruit," adding, "When it is implemented in November, the contents of the enforcement decree will greatly empower venture and startup companies."

The industry welcomed the multiple voting rights system but also conveyed concerns that existing investors might refuse the issuance of multiple voting rights during the prior consent process.