◀ Anchor ▶
There is a system that is drawing attention with Coupang’s listing in the US.
It is a differential voting system.
For example, one share has 29 votes.
At first glance, it may not make sense, but there are many countries that have introduced this system, and the Korean government is also pursuing it.
For some reason, reporter Min-chan Kim covered it.
◀ Report ▶
Google listed in 2004
At the time, co-founders Larry Page and Sergey Brin had only a 11.4% stake, but had 51.1% voting rights.
This is because 1 share of the founder’s stock gave them 10 voting rights.
Differential voting rights are a system that gives more voting rights to certain stocks than one vote.
Bum-seok Kim, Chairman of the Board of Directors Coupang, will receive 29 votes per share this time.
The reason for doing this is to guarantee stable management rights.
The aim is to make sure that the founder does not get swayed by other shareholders, and allows him to manage as much as possible from a long-term perspective.
In fact, when companies are exposed to attacks like hostile mergers and acquisitions of speculative capital, they spend useless money defending them.
Not only Google, but also Facebook, The New York Times, Nike, Alibaba, and Manchester United.
All of the leading companies have grown using this system.
[이동기/서울대 경영학부 교수]
“There is a need to raise a lot of funds by increasing the capital increase, but if that happens, the stakes of the founders are rapidly diluted and reduced, making it difficult to maintain management rights.”
Korea is also promoting the introduction of differential voting rights.
For venture companies, one share owned by the founder will have 10 voting rights.
[권칠승/중소벤처기업부 장관]
“In the venture industry, it will surely help to create an ecosystem where big companies such as unicorns (startup companies with an enterprise value of 1 trillion won or more) can grow…”
But the opposite is also difficult.
It is a concern that it will be abused by the excessive abuse of the chaebol.
[박상인/서울대 행정대학원 교수]
“The 3rd and 4th generations of chaebols make it, issue differential voting rights, and grow (corporate). Then, you can inherit it.”
The government said it would minimize side effects, such as converting to common stock three years after listing.
This is Min-Chan Kim of MBC News.
(Video coverage: Kim Woo-ram / Video editing: Yang Hong-seok)
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