South Korea IPO Proceeds Sink to $700 Million as Governance Reforms Squeeze Chaebol Listings
Updated
Updated · CNBC · Jun 24
South Korea IPO Proceeds Sink to $700 Million as Governance Reforms Squeeze Chaebol Listings
1 articles · Updated · CNBC · Jun 24
Summary
$700 million was raised from 15 South Korean IPOs by June 3, down sharply from an annual average of about $8 billion and 80 listings in 2020-2025.
Governance reforms aimed at ending the Korea discount have curbed parent-subsidiary listings, while chaebol control structures and a 50% inheritance tax above 3 billion won encourage low valuations and limited free float.
The five biggest conglomerates account for about 70% of market capitalization, and cross-held shares between listed parents and subsidiaries equal roughly 11% of the market—well above Japan's 4% and Taiwan's 3%.
Korea Exchange plans to delist around 300 companies by next year and says clearer rules could revive listings, even as the current slowdown hurts venture-capital fundraising and exits.
Analysts expect the thinner IPO pipeline to skew toward AI and semiconductor infrastructure companies, where heavy capital needs may require more public funding alongside private investment.