A Comparative Study of Dual Class Shares in the United States and the Republic of Korea.

Lecture in Korean

Image generated by speaker using ChatGPT

Yejin Jun Journalist, Korea Economic Daily

Thursday, May 15, 2025
11:00 AM - 12:00 PM

10383 Bunche Hall (10th floor)

In January of this year, the Republic of Korea implemented a double class share system. Shares of a double class are characterized by the possession of two or more voting rights per share. It is generally accepted practice for individuals to exercise decision-making authority within a corporate entity based on the proportion of shares they possess. However, this is not the case for venture firms that have received substantial investments and experienced compressed growth. This is due to the fact that, in the event of a change in management, the entrepreneurial spirit and management philosophy that have driven the company's growth may not be maintained. At this juncture, the multiple-voting stock system becomes pertinent.
         Numerous venture-backed nations, including the US, China, India, and the UK, have already adopted and utilized multiple-voting systems. Google is the most prominent example of this phenomenon in the United States. The plurality of voting rights has been positively received by venture and startup founders who wish to retain management control whilst attracting external investment to facilitate growth in their companies. However, the conditions for the issuance of plurality voting rights are challenging to fulfil in Korea, and only a limited number of ventures have met them to date. In her talk, Ms. Jun will explore the way forward for Korea by means of a case study of the United States, which was the first country to introduce a plurality voting system. 

Sponsor(s): Center for Korean Studies