18^h Meeting of Central Economic Response Headquarters

38^th Ministerial Meeting on the Economy

 

Government to Allow Venture Startups to Exercise

Multiple Voting Rights

 

 

Deputy Prime Minister Hong Nam-ki presided over the 18^th Meeting of the Central Economic Response Headquarters, that is the 38^th Ministerial Meeting on the Economy, held on October 16.  Deputy Prime Minister Hong discussed plans to allow multiple voting rights for venture startups, as well as plans to open a platform to promote manufacturer-startup cooperation.  DPM Hong talked at the beginning of his keynote address about the September employment data and how the government will work to help get jobs back. 

 

The following is a summary of Deputy Prime Minister Hong’s keynote address.

 

September employment data

 

The economy lost 392,000 jobs in September as services had been hit hard in August and September by the resurging virus.  However, social distancing lowered to level 1 this week, it is time to step up our efforts to help get jobs back.  We will promote consumption to help services revive, and support the recently improving exports in gaining momentum.  We will flexibly apply measures and rapidly implement plans to accelerate recovery and job creation.

 

To boost domestic consumption, we will offer discount coupons and promote SME products and small local markets during the Korea Sale Festa and Christmas holidays.  Meanwhile, we will work for the coronavirus unemployment reliefs planned in the 4^th supplementary budget to be delivered by the end of November, and create 300,000 public jobs this year to reach this year’s public job creation target of 1,550,000.  However, we know that best jobs are those created by the private sector and will continue to work to support private job creation, such as through the Korean New Deal and regulatory improvement.

 

Topics of discussion

 

1) September employment data and how to help get jobs back

 

2) Allow multiple voting rights for venture startups

 

The government has drawn up details of how the multiple voting rights for venture startups will work according to the plans already announced through the 2020 second half economic policies.  The details are as follows.

 

- Non-listed venture startups to exercise 10 votes per stock when facing a hostile takeover

- At least 75 percent of shareholders have to agree if the multiple voting rights to be exercised

- The multiple voting rights to go on three years after the day of listing before being abolished

- Revisions to the Act on Special Measures on Venture Businesses to be submitted to the National Assembly this year

 

3) Platform to promote manufacturer-startup cooperation

 

Although cooperation between large manufacturers and startups becomes necessary to be successful in a digital economy, finding a right partner has not been easy.  Therefore, the government decided to open a platform in November, through which manufacturers publicly find solutions to their problems and startups give solutions.  Problems could be tech-related, product development- or product improvement-related, and the government will provide support for R&D and commercialization, as well as consulting services, for the joint project to bear fruit.