As Americans increased their deficit by expanding the Korean subcontractor delivery system in Korea, and after accumulating venture funds, the stock price was announced on the U.S. stock market, and the Korean media showed their colors.
The interior that was first revealed through the public listing of Coupang is that both Chairman Kim Bum-suk and executives are Americans, and among foreign investments, Blacklock, the largest private equity fund in the United States, has soared since 2019. Came and is the second largest proprietor of Shinhan Finance.
Coupang's listing on NYSE was reported by foreign media around April, and Chairman Kim would distribute 100 billion won worth of stock to employees and disclosed as an application, “I will invest 1 trillion won to build 7 new regional distribution centers and create thousands of jobs.” It seems that the time of implementation was adjusted to the soaring share price due to the completion of the IPO.
Coupang's cumulative deficit was $4.1 billion (4.5 trillion won) as of last year, but it has intensively increased the number of US executives in the 1 billion range, including Chairman Kim's annual salary of 1 billion won and his younger brother 800 million won.
The Hankyoreh titled "Coupang Nailed "Coupangitz Delivery Man, Not Worker" in the US Stock Market Listing Report,
<In the listing declaration filed by Coupang to the US Securities and Exchange Commission (SEC) on the 12th (local time),'The Korean government decided that Coupangplex and Coupangitz deliverymen were not workers (under the Labor Standards Act) but as independent contractors (self-employed). 'The controversy is expected. This is because the Ministry of Employment and Labor has not disclosed judgments or interpretations as to whether they are workers who are commanded and supervised by Coupang. (Omitted) Coupang also responded to a question asking for the grounds for clarifying these details, “It is difficult to confirm the facts on the listing declaration under the regulations of the US Securities and Exchange Commission.” It has been reported that'Rider Union' has issued a union establishment report certificate for the purpose of recognition as a worker under the Trade Union Act.>
The JoongAng Ilbo published and sold a magazine in Harvard... In the title of ‘Business DNA,’
<I settled in America in 1994 when I was a middle school student. After naturalization, the nationality is the United States (omitted). He returned to Korea in 2010 and established Coupang with a capital of 3 billion won. (Omitted) The only daughter of the incumbent Minister of Strategy and Finance drew great attention because he joined the establishment of Coupang. It is the former director of Minister Yoon Jeung-Hyun's daughter Yoon Sun-ju (44). (Omitted) Coupang has about 2,000 IT developers. It develops software in Shanghai, China and Silicon Valley, USA. (Omitted) Chairman Kim collected a total of 14.3 million dollars (about 16 billion won) last year alone by adding stock options (omitted). The younger brother and spouse, who are known to have been pole vault players, were also confirmed to have received an annual salary of 720,000 dollars (about 800 million won) since 2018. Among the key executives, the most paid last year was Tuan Pam, Chief Technology Officer (CTO), who joined Coupang last year. (Omitted) Coupang chose the US stock market instead of Korea because it is difficult to list in Korea due to the cumulative deficit. ), but the cumulative deficit was over $4.1 billion (about 4.5 trillion won) as of the end of last year.>
In the title of the Kyunghyang Shinmun, <Avoiding the Controversy of Lost Companies and Better to Defend Management Rights Than Korea>,
<It is also argued that the US stock market is more advantageous in receiving large-scale investments in expanding the deficit and defending management rights (omitted). It is the same that Coupang has been receiving most of its investments from global funds. (Omitted) In the US market, where capital from all over the world is rushing, it is good to attract large-scale investments. (Omitted) The situation where Coupang's cumulative deficit exceeded 4 trillion won seems to have an effect. The question is whether the Korean stock market can accept Coupang's operating losses. (Omitted) On the other hand, in the US market, we have seen how much profits were made when Amazon of the US and Alibaba of China dominated the market, so the current operating loss is not a big problem. (Omitted) An analysis suggests that differential voting rights, which are not available in Korea, are also advantageous in defending management rights.>
The Chosun Ilbo in <[Editorial] Consider the Reason Coupang Goes to the US Stock Market,
<Coupang's business stage is in Korea, but the US subsidiary (Coupang INC) owns 100% of Coupang in Korea. (Omitted) In Korea, it is practically difficult to list a 10,000-year-old company like Coupang. Coupang is rapidly growing with an innovative delivery system, but it has not been able to make a surplus for 10 years since its founding, resulting in a cumulative deficit of 4 trillion won. (Omitted) The means of defense of management rights is also the best. When it applied for listing on the New York Stock Exchange, Coupang announced that it granted “differential voting rights” 29 times more common stocks to the shares held by the founder, Chairman of the Board of Directors Kim Bum-seok. (Omitted) On the other hand, domestic commercial law does not recognize such differential voting rights. (Omitted) If Coupang is listed on the domestic stock market, it would have to give up to 11 trillion won worth of stocks to the employee stock ownership association. So why would you want to list in Korea? (Omitted) In the application for listing on the New York Stock Exchange, Coupang stated that “there is a risk category” that “there may be imposed on costs and penalties in accordance with the Korean laws and regulations (where the business is located)”. It is said that doing business in Korea itself is a potential risk.>
As for “Maeil Economy,” the beneficiaries such as Danal in the domestic stock market are smiling wide as the e-commerce company Coupang officially announced its listing on the New York Stock Exchange. According to the financial investment industry on the 15th, Coupang submitted a report for listing Class A stocks to the US Securities and Exchange Commission (SEC) on the 12th (local time). It is known that the number of common stocks to be listed and the range of offering prices have not been determined. As Coupang's promotion of listing on the New York Stock Exchange is in full swing, domestic Coupang-related stocks such as Dongbang, KTH, KCTC, Otek, and Danal are soaring at once.>
The Hankyoreh said <(Strategy) Korea's Coupang is because the “Korean branch” of a company in Delaware (Coupang LLC) was strong. (Omitted) This is the structure of a business in Korea with funds raised in the United States. (Omitted) Coupang's compensation system in stock returns follows typical US practice. (Omitted) The United States is a country that provides the most unprecedented compensation to managers worldwide, and is evaluated as a “manager paradise”. For example, Tuan Pam, chief technology officer, who received the most compensation last year, received a stock compensation of 27 million dollars (about 30 billion won) in two months after recruiting in September last year. It is more than 30 times his flat salary (about 900 million won). (Omitted) The differential voting rights granted only to the founder, Chairman Kim Bum-seok, are also difficult to expect in Korea. Chairman Kim was guaranteed 29 times more voting rights per share of his own stock (Class B) than that of ordinary stock (Class A). (Omitted) As Chairman Kim, headquartered in the U.S., he gained both the defense of management rights and the benefits of 100 billion won worth of stock compensation. Meanwhile, the report also revealed that the younger brother of CEO Beom-seok Kim is working in Coupang. It was reported that the couple received the maximum annual salary of 475,000 dollars (about 525 million won) and 247,000 dollars (about 275 million won).>