Kwon Chil-seung: "Coupang's US Listing Means Growth of Domestic Venture Ecosystem" (Summary)

Minister of SMEs and Startups' 'Venture Business Employment Trend Briefing'
"Multiple Voting Rights System Varies Greatly... No Definitive Answer"
"Korean Model Has Potential to Succeed Globally"

Minister Kwon Chil-seung of the Ministry of SMEs and Startups is announcing the 2021 work plan, etc., on the 16th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] Kwon Chil-seung, Minister of SMEs and Startups (photo), said on the 16th, "It is meaningful that Coupang grew into a unicorn company by doing business in Korea and that our country's venture ecosystem has grown enough for it to be listed on the U.S. stock market."

Minister Kwon made this remark during the ‘Venture Company Employment Trend Briefing’ held at the Government Seoul Office in the afternoon, in response to a question about Coupang's recent application for listing on the New York Stock Exchange in the United States.

Minister Kwon explained, "Coupang's structure is somewhat different," adding, "The company actually going public is a U.S. company (Coupang's parent company, Coupang LLC). A U.S. company is listing in the U.S."

He continued, "I think it is meaningful that Coupang grew into a unicorn company by doing business in Korea, and based on that, our country's venture ecosystem has grown enough for it to be listed on the U.S. stock market."

Regarding the push for the introduction of multiple voting rights, Minister Kwon said, "The systems related to multiple voting rights vary greatly worldwide, and I think there is no single correct answer." It is widely viewed that the decision by Coupang to choose the U.S. New York Stock Exchange over the domestic stock market was influenced by whether multiple voting rights (differential voting rights) were introduced.

Minister Kwon emphasized, "Simplifying the decision to adopt or not adopt multiple voting rights alone is of no practical benefit. The details are important," adding, "It is wise to selectively adopt the method that best fits the country."

Minister Kwon Chil-seung of the Ministry of SMEs and Startups is announcing the 2021 business plan, etc., on the 16th at the Government Seoul Office in Jongno-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

He stated, "Since the owner's corporate perspective and management philosophy are intertwined, it is difficult to predict how multiple voting rights themselves will affect the listing," but added, "It will undoubtedly help create an ecosystem where large companies like unicorns in the venture industry can grow into big companies."

Additionally, Cha Jung-hoon, Director of the Startup and Venture Innovation Office at the Ministry of SMEs and Startups, said, "Models like Coupang are very standard models recently listed on NASDAQ or the U.S. New York Stock Exchange."

Director Cha said, "Going public is about attracting investment funds for a company's growth," and added, "The purpose of Coupang's intention to list on the U.S. stock market can be understood as recognition of the company's value and that many global investors are willing to invest."

He added, "I think the most important point is that a business model created in Korea has created the possibility of being accepted globally, even abroad."

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