Seoul, South Korea - The Ministry of SMEs and Startups (MSS) has introduced a multiple voting system for startup shareholders effective November 17.
The move is a significant step in the government's efforts to strengthen the startup sector, particularly in the tech industry.
Why It Matters
The new policy aims to help startups attract significant investment without compromising their voting power.
The system departs from the traditional one-vote-per-share approach by allowing up to 10 votes per share.
This change is critical to fostering a nurturing environment for young and emerging companies in South Korea.
The Key Points
- The multiple voting system allows up to 10 votes per share, a departure from the standard voting structure.
- The policy is part of a broader initiative to support the growth of startups, particularly in the technology sector.
- The introduction of the system followed six months of preparation and research after relevant legislative changes.
- The approach reflects a global trend of governments recognizing startups' critical role in economic growth.
What They Say:
Deputy Minister of Startup and Venture Innovation Jungwook Lim underscored the government's commitment to supporting startups.
During a November 13 meeting with startups that have received significant investment, Lim highlighted the complex nature of the startup ecosystem.
He emphasized the need for more than just financial support and indicated the government's willingness to provide direct advice and guidance.
The implementation of this system in South Korea is expected to be closely watched by international observers.
Its effectiveness in fostering startup growth and changing investment patterns will be of great interest.
Other countries could adopt this model to improve their startup environments.