Empirical evidence suggests that the voting premium in the Korean securities market
is strongly related to the structure of corporate ownership. We find that the premium
attached to voting stock is positively and significantly associated with the control
value of a block of shares held by minority shareholders. We also find that the premium
is negatively related to both the fraction of shares that are voting shares and the
market value of equity. Empirical results indicate that private benefits of control
in Korea are worth about 10% of the value of equity.