This article was posted on the ChosunBiz MoneyMove (MM) site at 4:47 p.m. Feb. 24, 2026.
The initial public offering (IPO) market has effectively entered a lull, as the Financial Supervisory Service's tougher review stance has led to a cascade of listing delays. With the Korea Exchange (KRX) also raising its review bar, fewer corporations are pursuing new listings. Some even predict that the number of companies listing this year could be only half that of last year despite the buoyant stock market.
Industry sources said that so far this year only four companies — Deokyang Energen, Kbank, ESteem and AXBIS — have conducted public offering subscriptions for retail investors. That is a 76% drop compared with 17 companies (excluding SPACs) that ran retail subscriptions during the same period last year.
In particular, last month only one company, hydrogen specialist Deokyang Energen, held a public offering for retail investors. This month the subscription companies were limited to Kbank, the internet-only bank; ESteem, a model agency; and AXBIS, an optical equipment specialist — just three firms.
Industry analysts say the FSS's tougher review of securities registration statements has depressed the IPO market. A representative case is Kanaph Therapeutics, a biotech developing anticancer drugs. The company submitted its securities registration statement to the FSS in early January and planned to take subscriptions at the end of the month, but postponed the schedule after receiving a series of correction requests from the FSS.
The FSS is reportedly asking companies seeking listings to provide more concrete grounds for earnings forecasts in their securities registration statements. The move is intended to block so-called "inflated offering price" controversies at the source. The FSS appears to be reducing informal revision recommendations and increasing formal correction orders.
The FSS previously asked AXBIS to correct its securities registration statement. AXBIS, which filed its securities registration statement at the end of last year, originally planned to complete both the institutional demand forecast and the retail subscription by early this month, but the schedule was delayed after going through two correction procedures for the securities registration statement. The retail subscription only began the day before.
The Korea Exchange's higher listing review threshold is also cited as a reason for the IPO lull early in the year. Since the second half of last year, the exchange has effectively restricted listings of corporations whose post-listing market capitalization is expected to be below 100 billion won. It is a response to the KOSDAQ rule change that will sharply tighten the delisting market cap threshold to under 20 billion won starting in July.
A source in the financial investment industry said, "In the past companies with market caps under 100 billion won could be listed if they met the requirements, but recently it feels like they are not allowed at all," adding, "The exchange is also concerned that companies listing with valuations under 100 billion won could see their stock prices fall and immediately become subject to delisting."
The "dual listing" controversy has compounded the listing gap. Where concerns about dual listings have been raised among subsidiaries of listed companies, listing reviews are being withdrawn or delayed more often. DTS, a subsidiary of DASAN Networks, filed for preliminary review for listing in September last year but has not received a result after five months.
Some predict the number of companies listing this year will plunge, as higher review thresholds have reduced the number of listing applications. In fact, only six companies have applied for preliminary listing review with the exchange through February this year, a sharp drop from 10 during the same period last year.
However, thanks to the stock market rally, demand for investment in public offerings remains strong. Deokyang Energen, the first IPO this year, saw its retail subscription oversubscribe by more than 1,354 to 1. Deposits for subscriptions exceeded 12 trillion won. Kbank also attracted nearly 10 trillion won in subscription deposits in its retail offering and was a hit.
An executive in charge of IPOs at a securities firm said, "While the appetite for public offerings remains from the market rally that began last year, there are few places to invest," adding, "Raising the review bar is necessary, but the exchange should at least clarify detailed rules on dual listings so corporations can respond."