"Preventing Unicorn Companies from Leaving Overseas Stock Markets"…Exchange Holds Meeting with Securities CEOs

Son Byung-du Chairman "Reevaluating from the Ground Up to Prevent a Second Coupang"
Decided to Ensure Management Stability and Focus on Future Growth in Review

Sohn Byung-doo, Chairman of the Korea Exchange (fifth from the left in the front row), and CEOs of securities firms attending the meeting are shouting "Fighting" and taking a commemorative photo.
(From the left in the front row) Hwang Seong-yeop, CEO of Shin Young Securities; Seo Byung-gi, CEO of IBK Investment & Securities; Choi Hyun-man, Senior Vice Chairman of Mirae Asset Securities; Sohn Byung-doo, Chairman of the Korea Exchange; Lee Young-chang, CEO of Shinhan Financial Investment; Park Ji-hwan, Vice President of Hana Financial Investment; (From the left in the back row) Yoon Byung-woon, Executive Director of NH Investment & Securities; Jang Seok-hoon, CEO of Samsung Securities; Oh Ik-geun, CEO of Daishin Securities; Kim Seong-hyun, CEO of KB Securities; Lee Hyun, CEO of Kiwoom Securities; Bae Young-gyu, Executive Director of Korea Investment & Securities.
(Photo by Korea Exchange)

[Asia Economy Reporter Gong Byung-sun] The Korea Exchange has stepped up to support domestic listings to prevent unicorn companies from moving to overseas stock markets.

On the 29th, the Exchange announced that it held a CEO meeting of securities firms at its Yeouido headquarters in Seoul to promote K-Unicorn listings. CEOs and executives from 11 major domestic securities firms attended the meeting.

In his opening remarks, Son Byung-doo, Chairman of the Exchange, said, "The paradigm of the capital market is changing," adding, "With the advent of the 4th Industrial Revolution, the emergence of smart retail investors, and domestic unicorn companies listing overseas, we have entered a borderless war."

He also emphasized, "The situation where we compete with overseas exchanges for the listing of high-quality domestic companies is unprecedented for the domestic capital market," and stressed, "We need to review from the ground up whether there were any disadvantages for domestic unicorn companies in listing, to prevent a domino effect like the second Coupang listing in the U.S."

The plan to revitalize K-Unicorn listings includes reforming the listing process. The existing procedure, which considered management stability during the listing review stage, will be supplemented institutionally with overseas markets through the introduction of a voting rights joint exercise agreement. The Exchange explained that the introduction of this agreement ensures management stability.

On the 29th, Son Byung-du, Chairman of the Korea Exchange, delivered opening remarks at the "Securities CEOs Meeting for Activating K-Unicorn Listings" held at the Korea Exchange building in Yeouido, Seoul. (Photo by Korea Exchange)

Additionally, the current system that reviews corporate continuity based on past business performance will be revised to focus on future growth potential, and new requirements will be introduced. To review listings of future growth companies, expert meetings will be introduced, and experts in future growth industries will be appointed as members of the Listing Disclosure Committee, thereby operating an expert group.

The procedures will also be simplified. For high-quality technology companies, the technology evaluation process will be streamlined. Furthermore, when transitioning to growth through SPAC mergers, necessary procedures will be relaxed and the review period shortened. Practical procedures will also be shortened to enable new growth and trading within 3 to 5 days after the subscription closing date.

Support for companies, including attracting listings and marketing, will be strengthened. The pre-consulting function will be enhanced, and expedited reviews will be conducted. In addition, meetings for prospective unicorn company CEOs and listing briefings will be held to provide opportunities to showcase the companies' strengths.

According to the Exchange, attendees said, "The announcement of improvement measures at this time was timely, and we welcome the Exchange's active consulting efforts," adding, "The financial investment industry will continue to work together to ensure that K-Unicorn companies list on the domestic capital market."

The meeting was attended by 11 securities firm CEOs or executives, including Choi Hyun-man, Senior Vice Chairman of Mirae Asset Securities, as well as representatives from KB Securities, Samsung Securities, Korea Investment & Securities, NH Investment & Securities, Shinhan Financial Investment, Hana Financial Investment, Kiwoom Securities, Daishin Securities, IBK Investment & Securities, and Shinyoung Securities.

This content was produced with the assistance of AI translation services.