LS Group stocks drop due to concerns over potential duplicate listings

Shares of LS Group affiliates fell sharply on the 6th as concerns about duplicate listings emerged. The previous day's remarks by Gu Ja-eun, chairman of LS Group, appear to have influenced the decline.

According to the Korea Exchange, LS ELECTRIC closed at 225,000 won, down 31,000 won (12.11%) from the previous trading day. The group's holding company, LS Corp., recorded a decrease of 11,900 won (10.29%), closing at 103,700 won.

Additionally, major affiliates of LS Group, including LS Eco Energy (-5.39%), LS Networks (-3.89%), LS Materials (-2.19%), LS Marine Solution (-2.94%), and Gaon Cable (-1.54%), all saw declines.

The sharp decline in the stock prices of LS Group listed companies is due to concerns that unlisted affiliates within the group might seek to go public. This could lead to a discount problem, where the value of existing listed companies is harmed due to the duplicate listings of parent and subsidiary companies.

The previous day, Chairman Gu noted to reporters at the 'InterBattery 2025' event held in Gangnam, Seoul, that unlisted affiliates would seek to go public. He said, "Small companies must continue to inject funds in order to grow, and to make investments, they must secure funding, but the methods are limited."

Currently, LS Group has more than five affiliates preparing for initial public offerings (IPOs), including LS E-Link, which is making a second attempt after withdrawing its application for a preliminary review last year, Essex Solutions, and KOC Electric, a subsidiary of LS ELECTRIC.

An LS Group official said, "We fully understand and acknowledge the concerns about duplicate listings," but added, "However, as affiliates need massive investments during the explosive growth process, I believe the best way to secure investment funding in a high-interest-rate environment is through an IPO."