[아주 정확한 팩트체크] Coupang listed in the US, blamed for multiple voting rights?…

Coupang, the largest online shopping mall in Korea, is attracting attention as it recently officially promoted listing on the New York Stock Exchange.

In the political world and industry, one of the reasons Coupang chose the US market rather than Korea is the issue of domestic differential (multiple) voting rights.

In response, the Citizens’ Alliance for Economic Justice Practices (Kyongsilyeon), a civic group, issued an official position on the 16th and pointed out that “the public is goodwill” and that “to be precise, the original US company is listed on the US stock market.”

① Is Coupang listed on the US stock market?

Yes. Earlier, Coupang announced on the 12th (local time) that it had submitted a report for listing on the New York Stock Exchange (NYSE) through a disclosure 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.

② Why is Coupang listed on the US stock market?

In this regard, differential voting rights are one of the main factors in which Coupang chose to list on the US stock market instead of in Korea.

Differential voting rights are a system to ensure that the founder or manager can operate 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 the management and the abuse of management succession measures.

According to the listing report filed by Coupang to the SEC, Coupang 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 has 29 times more voting rights than Class A.

Accordingly, even if Chairman Kim’s ownership ratio decreases after Coupang is listed, the influence on Coupang can be maintained. In addition, rapid decision-making is expected to be possible.

③ What is the domestic reaction?

Some people in Korea point out that the differential voting rights should be introduced as soon as possible.

In fact, the government is 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’.

The main purpose of this bill is to allow venture companies that are not listed on the stock market to issue multiple voting stocks on a limited basis to founders so that they can attract large-scale investments without fear of diluting their shares.

In addition, some politicians and industries have argued that the commercial law should be amended to introduce full-scale differential voting rights.

④ Coupang listed on the US stock market…is it due to differential voting rights?

However, civic groups pointed out that Coupang’s decision to list the US stock market was not due to differential voting rights.

In a press release on the day, Kyungshilryeon said, “This is just a misunderstanding with no basis at all.” It is a wholly owned subsidiary of’Coupang Co., Ltd.’.

It means that the US company’Coupang LLC’ converted to’Coupang Inc.’ and applied for listing on the New York Stock Exchange.

“(Coupang) has been transfusion of large-scale capital increase funds from Japanese Softbank and Vision Fund. In addition, major shareholders are made up of institutional investors in the United States,” said Kyungshilryeon. It is a scenario that doesn’t fit from the front and back of “.

At the same time, the group said, “Before the listing of the American company’Coupang LLC’ on the US New York Exchange, it is right to stop all public calls to make the argument for allowing multiple voting rights in Korea.” It must be discarded,” he urged.