The total proceeds from initial public offerings (IPOs) in the South Korean stock market rose by 14.9% in 2025 compared to the previous year, reaching 4.57 trillion won (US$3.19 billion). A total of 77 companies debuted on the main bourse KOSPI and the tech-heavy KOSDAQ markets this year, slightly lower than the 78 companies that went public in the previous year.
LG CNS Co., an IT affiliate of LG Electronics Inc., led the IPO fundraising with 1.19 trillion won, followed by DH Shipbuilding Co. with 500 billion won. The company anticipates continued momentum for significant IPOs in the coming year, despite potential impact from new regulations.
Starting next year, more than 40% of IPO shares will be allocated to institutional investors committing to holding the shares for a specified period, doubling the current allocation. This move aims to address concerns about quick profit-taking by institutional investors on the first day of trading.
South Korea’s bourse operator, Korea Exchange (KRX), plans to implement stricter rules for IPOs and delisting to enhance market confidence. The Financial Services Commission (FSC) also announced changes, including increasing the initial allocation of IPO shares to institutional investors and revising delisting regulations to expedite the exit of non-compliant companies.
