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S. Korea to introduce multiple voting rights for non-listed venture startups

All News 11:06 October 16, 2020

SEJONG, Oct. 16 (Yonhap) -- South Korea's finance minister said Friday that the government plans to introduce multiple voting rights for non-listed venture startups to help shareholders strengthen their control over companies.

Finance Minister Hong Nam-ki said the scheme is aimed at encouraging venture startups to get major investment deals, while defending companies against hostile takeovers.

The scheme could allow one stock to give 10 votes if a non-listed venture startup faces a hostile takeover.

However, more than 75 percent of shareholders must agree on the scheme if multiple voting rights are implemented, Hong said.

If a startup is listed, the scheme will be abolished after a three-year grace period, Hong said.

The move is subject to parliamentary approval, and the government will submit a relevant bill to the National Assembly by the end of this year, Hong said.

Finance Minister Hong Nam-ki speaks at a policy meeting on Oct. 16, 2020. (Yonhap)

kdh@yna.co.kr
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