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2026-11-05 10:06:27
[South Korea to Introduce Cornerstone Investor System for IPOs to Curb Post-IPO Sell-Off] (1) South Korea's financial regulator will introduce a cornerstone investor system for initial public offerings (IPOs) to curb sharp declines in share prices after listing. (2) The Financial Services Commission of South Korea stated that under the new system approved by the government on November 3, institutional investors who commit to a lock-up period of at least six months can receive new shares in advance. (3) The relevant regulations will take effect on November 13 along with the amendment to the Capital Markets Act. (4) The Financial Services Commission of South Korea stated that introducing stable medium- to long-term institutional investors before IPO pricing should help enhance investor confidence in IPOs and help prevent sharp declines in share prices after listing due to concentrated selling by holders.
