Party and Government "Venture Regulation Innovation"... Meeting with Industry to Introduce Multiple Voting Rights

Democratic Party Regulatory Innovation Task Force On-Site Policy Meeting
Discussion on Multiple Voting Rights, Non-Face-to-Face Ventures, and Related Systems
"Venture Startup Activation... Eliminating Unnecessary Regulations"
Chairman Kang Sam-gwon: "Industry Feels It's Somewhat Insufficient"

Kim Tae-nyeon, Floor Leader of the Democratic Party of Korea./Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Kim Bo-kyung] "We will support venture companies to receive large-scale investments, manage stably, and continue to grow. (Kim Tae-nyeon, Floor Leader of the Democratic Party of Korea)"

"Venture companies are innovating. I believe policies must innovate as well. (Kang Sam-kwon, Chairman of the Korea Venture Business Association)"

The Democratic Party's Regulatory Innovation Promotion Team and the Ministry of SMEs and Startups held a policy meeting on the 16th at the Seoul Center for Creative Economy and Innovation with venture industry stakeholders and experts to create a 'Second Venture Boom.'

On this day, the government and ruling party unanimously agreed on regulatory reforms and institutional foundations to revitalize the venture ecosystem, including the introduction of multiple voting rights and fostering non-face-to-face venture companies.

Multiple voting rights stocks refer to shares that grant two or more voting rights per share. Many countries with active venture investments, such as the United States, China, India, and Singapore, have introduced this system. The ruling party and government are currently pushing legislation to introduce multiple voting rights for unlisted venture companies.

In his opening remarks, Kim Tae-nyeon, Floor Leader of the Democratic Party, said, "Multiple voting rights aim to support venture companies in receiving large-scale investments, managing stably, and continuing to grow," adding, "We will also improve necessary systems so that venture companies can continuously receive growth capital."

Leader Kim stated, "To further activate venture startups, we will boldly innovate unnecessary regulations and promote support," and "We will ensure that venture companies do not lose growth opportunities due to outdated and obsolete regulations."

Kang Sam-kwon, Chairman of the Korea Venture Business Association. / Photo by Dongju Yoon doso7@

Hong Ik-pyo, Chairman of the Democratic Party Policy Committee, analyzed that the growth of venture companies has had a positive impact on our economy. Last year, venture investment reached a record high of 4.3 trillion won, and the amount of newly formed venture funds exceeded 6 trillion won for the first time. Venture companies created 53,000 jobs last year, bringing total employment to over 800,000.

Chairman Hong mentioned that the OECD recently revised upward South Korea's economic growth forecast compared to previous estimates, analyzing, "Exports in the SME sector, centered on future advanced industries and ventures, have rapidly increased, contributing to the economic growth rate."

However, the venture industry still feels thirsty. Kang Sam-kwon, Chairman of the Korea Venture Business Association, said, "The government is promoting regulatory innovation through regulatory sandboxes and proactive administration, but the industry feels that some parts are somewhat lacking," adding, "I believe regulatory reform is absolutely necessary."

He emphasized, "Seeing venture companies voluntarily engage in social contribution and donation activities and fulfill social responsibilities shows that the venture ecosystem is becoming healthier," and "Venture companies are innovating through the Fourth Industrial Revolution, IoT technologies, etc. I believe policies must innovate as well."

Kang Sung-chun, Vice Minister of the Ministry of SMEs and Startups, evaluated, "Despite the COVID-19 situation last year, all indicators of venture companies?investment, fund formation, startups, and job creation?showed dynamic results," adding, "There is a consensus that a venture boom is forming."

He continued, "Efforts to improve systems such as multiple voting rights and regulatory innovation must be supported. The Ministry of SMEs and Startups will take the lead," expressing his determination, "We will listen carefully to field opinions and reflect them in policies."

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