As the National Assembly’s Committee on SMEs and Startups for Trade, Industry and Energy made a move to pass an amendment to the Act on Special Measures for Venture Business Development (Venture Business Act), which allows unlisted venture companies to issue multiple voting shares, it has asked the politicians, labor and civic groups to be used for hereditary succession to the chaebol. was concerned and opposed. Multiple voting rights is a system that allows large shareholders to exercise more than their shares.
On the afternoon of the 22nd, Rep. Ryu Ho-jeong of the Justice Party, the two major trade unions and the Solidarity for Participation, held a press conference at the National Assembly Communication Hall and demanded, “Abolish the bill allowing multiple votes.”
A bill to amend the Venture Business Act to protect the management rights of venture business founders and revitalize investment is pending in the Commerce and Industry Committee. There is also a government bill that permits the issuance of no more than 10 multiple-voting shares per week, and a bill by the Democratic Party of Korea, Kim Byung-wook, which does not limit the number of multiple-voting shares. The Ministry of Commerce, Industry and Energy plans to hold a subcommittee on small and medium-sized venture companies and review the bill. The principle of one share, one vote reflects the position of the business community that the voting rights of large shareholders of venture companies that have issued stocks for financing are diluted and management rights become unstable.
The two major trade unions were concerned that the law would lead to the succession of chaebols. Heo Kwon, standing vice chairman of the Korea Federation of Trade Unions, said, “The right to vote is a chaebol law that the FKI has been promoting since 2004. Han Seong-gyu, vice chairman of the KCTU, demanded that the Lee Jae-myung and Yoon Seok-yeol camps and the presidential campaigns of my party also clarify their position on this.