A dual-class share system would assist extra unicorns to contemplate itemizing within the native market, KRX chairman Sohn Byung-doo says.
KRX (Korea Trade) is reportedly pushing for the introduction of a dual-class share system, as a part of efforts to draw listings from modern corporations.
In accordance with Korea Herald, KRX chairman Sohn Byung-doo stated that permitting a dual-class share system within the nation would assist extra unicorns – privately held startups valued at KRW 1 trillion (USD 884 million) or larger – to contemplate itemizing within the native market.
“Each the nation’s ruling and the primary opposition events have mentioned issues associated to adopting dual-class voting rights,” he stated. “If the federal government permits the system, we imagine that it’ll seemingly appeal to (promising unicorn) companies’ preliminary public providing to the native inventory market.”
Whereas the dual-class share system is prohibited within the Korean market, Korean e-commerce firm Coupang’s latest IPO within the US has rekindled debate over the need of dual-class shares within the nation.
A number of different Korean startups additionally seem to have set their sights on abroad inventory market debuts to pursue bigger investments on the worldwide stage, the Korea Herald stated. A few of these embrace on-line grocery service Market Kurly, resort platform Yanolja and fintech agency Dunamu.
In accordance with Sohn, the impression of brief promoting actions on the KRX isn’t prone to trigger main disruptions. He additional highlighted that the bourse operator has strengthened its monitoring system and improved infrastructure to intercept these participating in unfair inventory buying and selling practices, amongst different measures to forestall unlawful brief promoting.