![[아주 쉬운 뉴스 Q&A] Is it because of Coupang, listing on the US stock market and differential voting rights rather than Korea](https://image.ajunews.com/content/image/2021/02/16/20210216093551800517.jpg "[아주 쉬운 뉴스 Q&A] Is it because of Coupang, listing on the US stock market and differential voting rights rather than Korea")
In this regard, political circles and industries are wondering why Coupang chose the US market rather than Korea. As one of them, there are many voices citing the issue of differential (multiple) voting rights that have not been introduced in Korea.
However, the Citizens’ Alliance for Economic Justice Practices (Gyeongsil-ryon), a civic group, issued an official position on the 16th and criticized “The claim that Coupang chose to list on the US market because of the differential voting rights is’hodo to the public.” Shall we find out exactly why?
Coupang, a domestic online shopping mall, will be listed on the New York Stock Exchange. Coupang announced on the 12th (local time) that it had submitted a report for listing on the New York Stock Exchange (NYSE) through a public announcement by the Securities and Exchange Commission (SEC). Coupang is known to be promoting listing on the NASDAQ, but it was listed on the NYSE. The picture is of Coupang headquarters in Sincheon-dong, Songpa-gu, Seoul. [사진=연합뉴스]
Q. Is Coupang listed on the US stock market?
A. Yes. Coupang announced on the 12th (local time) that it has submitted a report for listing on the New York Stock Exchange (NYSE) through a public announcement by the US Securities and Exchange Commission (SEC).
The company plans to list on the New York Stock Exchange under the ticker code’CPNG’, not the Nasdaq originally expected in the market.
According to foreign media, the market capitalization of Coupang is estimated to reach about 30 trillion won to 50 trillion won after listing.
Q. Why are you listing in the US market instead of the Korean market?
A. There are many analyzes in Korea regarding the reason Coupang is listed in the US market rather than the Korean market.
Among them, the issue of differential voting rights is a major issue.
Q. What is the differential voting right?
A. Differential voting rights refer to a system designed to ensure that the founder or manager operates a company stably without worrying about losing management rights.
In Korea, it has not been introduced yet due to concerns about the moral harm of management and the abuse of management succession measures.
Q. If Coupang is listed on the US stock market, does it have differential voting rights?
A. Yes. Looking at the listing declaration filed by Coupang to the SEC, the company decided to divide the stocks into Class A common stock and Class B common stock and grant differential voting rights to Coupang Chairman Kim Bum-seok.
Chairman Kim’s stock is Class B, which is said to have 29 times more voting rights than Class A.
Eventually, even if Chairman Kim’s stake decreases after Coupang is listed, his influence on Coupang can be maintained. It is also said that quick decision-making will be possible.
Q. Is there no request to introduce differential voting rights in Korea?
A. Looking at Coupang’s plans to list on the US stock market, there is a growing demand for the introduction of differential voting rights in Korea as soon as possible.
Even if not, the government is currently promoting the introduction of multiple voting rights for unlisted venture companies through the’Amendment to the Act on Special Measures on the Promotion of Venture Businesses’.
It is said that the main goal of the bill is to allow venture companies that are not listed on the stock market to issue multiple voting shares on a limited basis to founders so that they can attract large-scale investments without fear of diluting their shares.
Furthermore, some political circles and industries are arguing that the commercial law should be amended to introduce full-scale differential voting rights.
Q. But is Coupang’s listing on the US stock market really because of differential voting rights?
A. Some civic groups argue that Coupang’s decision to list the US stock market was not due to differential voting rights.
In this regard, Kyungshilryeon released a press release on this day and insisted that the company listed on the New York Stock Exchange is not a domestic company, Coupang Co., Ltd.
Q. So which companies are listed on the US stock market?
A. According to Kyungshilyeon, Coupang, a domestic company listed on the US market, is a wholly-owned subsidiary of Coupang LLC, an American company.
At the same time, Kyungshilyeon emphasized that “Coupang LLC, an American company, has converted to’Coupang Inc.’ and applied for listing on the New York Stock Exchange.”
Q. So, is the US company listed on the US market?
According to the convulsions claim, yes. The group also said, “(Coupang) has been transfused with large-scale capital increase funds from Japan’s Softbank and Vision Fund. In addition, major shareholders are made up of institutional investors in the United States. It’s a scenario that doesn’t fit from the front or back of the end in the first place.”
In addition, “Before the US company’Coupang LLC’ is listed on the US New York Exchange, it is correct to stop all public calls to make the argument for allowing multiple voting rights in Korea.” I urged.”