Venture Industry Urges "Swift Passage of Dual-Class Share Law... Must Not Make the Mistake of Killing the Goose That Lays the Golden Eggs"

Innovation Venture Organizations Council to Announce 'Joint Statement' on 22nd
"Enhance Capital Market Competitiveness, Foster Unicorn Growth"
"No Concerns Over Investment Contraction or Use as Means for Chaebol Succession"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] The venture and startup industry on the 22nd urged the swift passage of the multiple voting rights allowance bill in the National Assembly. They warned, "We must not make the mistake of cutting down the bridge while trying to kill the ox, failing to achieve innovation in domestic policies and falling behind in global competition."

The Innovation Venture Organizations Council issued a statement that day, saying, "Large-scale exits (investment recoveries) of innovative ventures and startups are continuing," and "It is urgent to enhance the global competitiveness of the domestic securities market by introducing multiple voting rights." The Innovation Venture Organizations Council includes 16 venture, startup, and investment organizations such as the Korea Venture Business Association, Korea Startup Forum, KOSDAQ Association, and Korea Venture Capital Association.

They argued, "The multiple voting rights system should be introduced to strengthen the global competitiveness of the domestic securities market and to activate the domestic listing of digital innovation companies." The 'Venture Business Act Amendment Bill,' which allows multiple voting rights (two or more voting rights per share) for unlisted venture companies, is currently pending in the National Assembly's Industry, Trade, and Small and Medium Enterprises Committee.

The council stated, "Once the bill is enacted, founders will be able to exercise entrepreneurship from a long-term perspective based on stable management rights," adding, "It will be an opportunity for venture companies to receive large-scale investments and grow into unicorn companies."

They further explained, "All of the world's five major stock exchanges?including the United States and China, which are venture powerhouses, as well as London, New York, Nasdaq, Germany, and Tokyo?have introduced the multiple voting rights system to encourage the listing of innovative companies and revitalize the digital economy."

They continued, "South Korea should also introduce multiple voting rights to lead the domestic listing of innovative venture and startup companies and hasten the strengthening of the competitiveness of the Korean capital market."

They also claimed that concerns about multiple voting rights causing a contraction in venture investment are unfounded. Institutional measures have been put in place to prevent abuse as a means of succession by large conglomerates.

Some civic groups and political circles oppose multiple voting rights, arguing that they could be abused as a means for conglomerates to inherit management rights and that minority shareholders' rights could be infringed.

The council said, "The domestic venture capital industry also supports the introduction of the multiple voting rights system," adding, "The bill clearly limits the eligibility for multiple voting rights to unlisted venture companies and includes strict restrictions such as converting to common shares upon inheritance or transfer."

Finally, they emphasized, "In the rapidly changing environment of the Fourth Industrial Revolution and digital transformation, we must not make the mistake of cutting down the bridge while trying to kill the ox by failing to achieve innovation in domestic policies and falling behind in global competition."

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