Prospective mobility startups concerned about IPO plans over proposed e-scooter ban

A traffic sign indicates that electric scooters are not allowed from 12 p.m. to 11 p.m. in the trendy, youth-oriented district of Hongdae in Seoul, as part of the city’s pilot program to ban electric scooters in specific zones, on Monday. Yonhap

Mobility startups valued at hundreds of billions of won could face challenges in going public, as a proposed bill seeks to completely ban electric scooters — the core of their shared transportation business, industry officials said Thursday.

The bill, proposed by Rep. Kim So-hee of the main opposition People Power Party (PPP), aims to remove electric scooters from the legally recognized list of personal mobility devices and prohibit their operation entirely.

The proposal, submitted on Oct. 31, comes amid a surge in accidents involving electric scooters.

According to data from the Korea Road Traffic Authority, the number of such accidents increased more than 20-fold in six years — from 117 cases in 2017 to over 2,300 in 2023 — resulting in 24 deaths and around 2,600 injuries.

Notably, 34 percent of the accidents involved unlicensed drivers, and among those cases, 67 percent of the offenders were under the age of 20, prompting calls for stricter safety regulations.

However, industry officials warn that the ban could jeopardize mobility startups’ plans for initial public offerings (IPOs), which assume the continued use and growth of electric scooters in the shared transportation sector.

Among these companies are The Swing, G-Bike, Beam Mobility Korea and PUMP, which have received hundreds of millions to over a billion won in investments from major corporations and financial firms. All are unlisted companies, valued at 200 to 300 billion won, and are pursuing public listings.

The Swing, which operates the shared scooter service “SWING,” received investment from first-generation venture company Humax as well as venture capital firms including Hashed Ventures and SJ Partners.

G-Bike, operator of the electric scooter “GCOO,” secured funding from Hyundai Motor, Mirae Asset Venture Investment, Yuanta Investment, Eugene Asset Management and BNK Venture Investment. PUMP, which operates “SING SING,” also attracted investments from SK Inc., KB Investment and Shinhan Capital.

These investments were driven by the startups’ perceived growth potential. Shared scooters are considered a solution for the “last mile” of transportation — bridging the gap from subway stations or bus stops to the final destination.

“If the law passes, these startups will struggle to meet IPO requirements,” an industry official said, noting that companies would find it difficult to score highly on corporate continuity and business viability.

He added, “If operations are halted due to the law, not only prospective IPO companies but also already listed firms would need to undergo separate, substantial listing reviews.”

Another industry official noted that while safety is important, an outright ban could stifle innovation and severely impact the growth of shared transportation startups.

“The debate highlights the challenge of balancing public safety with the development of new urban mobility solutions,” he said.