How Much Did IPOs in South Korea Increase Through Q3?
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Synopsis
In a remarkable surge, South Korea's IPOs have skyrocketed by 19%. With a total of 55 companies making their stock market debut this year, the country is witnessing a significant uptick in investment activity. Explore the implications of this trend and the new regulations shaping the IPO landscape in South Korea.
Key Takeaways
- IPOs in South Korea increased by 19% in 2023.
- Total proceeds reached 3.41 trillion won.
- 55 companies debuted on stock markets.
- New regulations will allocate 40% of IPO shares to institutional investors.
- KOSPI index has risen over 43% this year.
Seoul, Oct 7 (NationPress) Initial public offerings (IPOs) in South Korea experienced a notable increase of 19 percent during the first nine months of this year compared to the same timeframe last year, according to data released on Tuesday.
The total proceeds from IPOs amounted to 3.41 trillion won (approximately $2.43 billion) for the January-September period, a rise from 2.85 trillion won recorded in the previous year, as per information from the consulting firm IR Kudos Corp, as reported by Yonhap news agency.
During this period, 55 companies made their market debut on the main KOSPI and tech-focused KOSDAQ exchanges, an increase from 47 companies that went public a year prior.
Among these, LG CNS Co., the IT division of LG Electronics Inc., secured the highest amount from its IPO, raising 1.19 trillion won, followed by DH Shipbuilding Co. with 500 billion won and Seoul Guarantee Insurance Co. (SGI) at 182 billion won, according to the data.
The consulting agency anticipates that IPO activity will continue to rise for the remainder of the year, driven by a positive market environment.
This year, South Korea's main index, the KOSPI, has surged over 43 percent.
However, the nation’s financial authorities have announced plans to implement more stringent regulations for IPOs.
Beginning next year, over 40 percent of IPO shares will be allocated to institutional investors who agree to hold onto these shares for a specified duration, typically between three to six months.
Currently, around 20 percent of IPO shares are offered to such institutional investors to facilitate the smooth entry of new companies into the stock market.
This regulatory change comes as several institutional investors face criticism for quickly profiting from IPO shares by selling them on the first trading day.
Point of View
It is evident that the recent surge in IPOs in South Korea reflects a robust economic climate and investor confidence. The introduction of stricter regulations will likely enhance market stability while ensuring that institutional investors play a responsible role in the IPO process. The nation stands poised at a critical juncture in its financial evolution.
NationPress
07/10/2025
Frequently Asked Questions
What percentage did IPOs in South Korea rise in 2023?
IPOs in South Korea rose by 19 percent in the first nine months of 2023 compared to the same period last year.
How much money was raised through IPOs in South Korea this year?
A total of 3.41 trillion won (about $2.43 billion) was raised through IPOs during the January-September period.
How many companies went public in South Korea this year?
55 companies made their stock market debut in South Korea during the specified period.
What are the new regulations for IPOs in South Korea?
Starting next year, more than 40 percent of IPO shares will be allocated to institutional investors who agree to hold the shares for a set period.
Which company raised the most through its IPO in 2023?
LG CNS Co. raised the highest amount of 1.19 trillion won through its IPO this year.
