Democratic Party's Lee Yong-woo, 50 Billion Won Surge in Stock Options of Abandoned KakaoBank

Lee Yong-woo, Member of the Democratic Party of Korea./Photo by Dong-joo Yoon doso7@

[Asia Economy Reporter Park Cheol-eung] The value of KakaoBank shares, which Lee Yong-woo, a member of the Democratic Party of Korea and former CEO of KakaoBank, gave up when he entered politics, is soaring to unprecedented heights. This is because the company has officially announced its plan to pursue an initial public offering (IPO). Based on the current over-the-counter market value, the stock options (rights to purchase shares) that Lee held are worth more than 50 billion KRW.

According to the financial sector, including Securities Plus, on the 25th, KakaoBank shares are trading in the 100,000 KRW range on the over-the-counter market, with a market capitalization approaching 40 trillion KRW. This is comparable to the market capitalization of the four major financial holding companies (Shinhan, KB, Hana, and Woori).

Earlier this year, when Lee joined the Democratic Party, he gave up stock options to purchase 520,000 shares at 5,000 KRW per share. Arithmetically, this represents an asset value of about 50 billion KRW. These options were granted following the introduction of an employee stock compensation system at the shareholders' meeting in March last year.

At a press conference upon joining the party in January, Lee stated, "Social public goods are public goods, and politics is dedication. The opportunity to serve is more precious."

Of course, only a very small number of KakaoBank shares are currently circulating, and interest has increased significantly since the KakaoBank board resolved to pursue an IPO on the 23rd. Even considering a 'bubble,' it is understood that Lee gave up assets worth more than 10 billion KRW.

Jeon Bae-seung, a researcher at eBest Investment & Securities, said, "The market capitalization calculated based on over-the-counter stock prices is around 40 trillion KRW, but considering the shareholding structure and limited circulating volume, its representativeness is low," adding, "KakaoBank's value is estimated to be around 8 trillion KRW."

During his election campaign, Lee said, "I have received a lot from society, and I want to give back. Giving back means nothing other than creatively improving the systems of this society by reforming laws and institutions."

He is focusing on proposing amendments to the Special Act on Listed Companies, the Capital Market Act, the Fair Transactions in Subcontracting Act, and the Fair Trade Act to improve corporate governance of listed companies and protect investors.

This content was produced with the assistance of AI translation services.