This article was published on Aug. 26, 2025, at 4:45 p.m. on the ChosunBiz MoneyMove website.
Medical device manufacturer Livsmed is facing a crisis in its challenge to list on the KOSDAQ market. The manufacturer of multi-joint surgical instruments capable of rotating 90 degrees in all directions had previously been expected to have a value in the trillions, but it has become embroiled in a technology patent dispute. It appears that the initial review for listing by the Korea Exchange has been put on hold.
According to the financial investment industry on the 26th, Livsmed's attempt to list on the KOSDAQ is failing to pass the Korea Exchange's listing examination threshold. The company applied for preliminary examination in May with the goal of achieving a technically enabling listing without realized profits, but it has remained in a 'application received' status for about four months, or 111 days.
Livsmed had intensified its listing challenge after receiving 'AA' and 'A' ratings in a technology assessment at the end of last year. Its core product, the 'ArtiSential,' a laparoscopic surgical instrument capable of rotating 90 degrees in all directions, was intended to provide funding for expanding production facilities and securing global sales through this listing.
Initially, the market projected that Livsmed would obtain approval for examination in July. In actuality, the Korea Exchange has focused on reducing the examination period by establishing a dedicated examination system, with the processing time from application for preliminary examination to notification of examination results (general listing criteria) being about 78 days since the second quarter of this year.
The patent dispute has become an unexpected variable. It was revealed that ACH Medical, another medical device manufacturer, sent a warning letter to Livsmed requesting the cessation of patent infringement in April, followed by a patent infringement lawsuit last month. The issue is whether the joint structure at the tip of the ArtiSential is identical to the patent of ACH Medical.
The Korea Exchange is reported to plan to delay the examination conclusion until the results of the Patent Court's deliberation are available. This is because legal disputes after listing could result in a decline in corporate value and harm to investors.
The fact that the ArtiSential is the core revenue source for Livsmed also weighs heavily on the Korea Exchange. In fact, the ArtiSential has been introduced in about 250 hospitals nationwide, with last year's sales totaling 27.1 billion won.
In fact, the Korea Exchange evaluates the practical effects of lawsuits on corporate sustainability more than the mere existence of legal disputes in a special technical listing. In the case of Livsmed, since it relies heavily on sales from the ArtiSential, recognition of patent infringement could lead to potential investor harm after listing.
Industry insiders believe that the decision on Livsmed's listing will be a watershed moment next month. This is due to Livsmed's petition for patent invalidation and confirmation of rights against ACH Medical having been expedited to a fast-track examination early last month. Considering that fast-track examinations are typically processed within three months, a conclusion is expected as early as September.
A source in the securities industry noted, "There is no doubt about Livsmed's technological capability and growth potential, but as long as the legal uncertainty about core technologies remains unresolved, the Korea Exchange will find it difficult to easily reach a preliminary examination conclusion." He added that, "It must win in the trial to gain recognition of its technological capabilities and expedite its listing."
Meanwhile, financial investors (FIs), who were aiming for a big return on investment after the listing, are also closely monitoring the examination process. In particular, Stonebridge Ventures, an early investor in Livsmed, has received expectations that if Livsmed lists with a valuation of 1 trillion won, they could yield returns of over 30 times their original investment.
Additionally, as of the end of last year, NHN Investment held 4.6%, LB Global Expansion Investment Association held 4.27%, WONIK New Growth 2018 Private Equity Partnership held 3.81%, and Intervest 4th Industrial Revolution Investment Association held 1.45% equity. The founder Lee Jeong-joo, who is the CEO of Livsmed, holds a 45.27% stake.