Korean IPO market has cooled sharply after a strong 1H. Korea Exchange said on
Sunday 14 of 18 companies listed this year are trading below their issue price,
with newly listed tech and fashion names leading declines. Analysts point to
inflated IPO pricing and rapid exits by short-term speculative funds; regulators
have recently tightened lock-up periods for institutional investors, but macro
shocks and a supply-demand imbalance leave small- and mid-cap new listings
especially vulnerable. Domestic liquidity is concentrated in large-cap AI and
semiconductor-chain names including Samsung Electronics and SK Hynix, limiting
capital flow to newer issuers. The financial industry is banking on a H2
pipeline of large, high-valuation listings to revive activity; new dual-listing
guidelines have also been issued.
