🧠 Food for thought

Implications, context, and why it matters.

14.9% rise masks a weak rebound from a depressed 2024 baseline

• IPO proceeds of 4.6 trillion won in 2025 mark a modest rebound, far below Q3 2021 mega-deals such as Krafton ($3.8 billion) and Kakao Bank ($2.2 billion) 1.
• Through Q3 2025, 55 companies listed, up from 47 in 2024 2, yet conditions remain fragile. Institutional investors sold on listing day in 74 of 77 IPOs in 2024 3. Short-term flipping, selling immediately after listing, hurts post-IPO stability.
• The KOSPI, South Korea’s main stock index, fell 10% in June 2024 4. Japan and Taiwan posted gains over five years 4, so problems stretch beyond IPO proceeds.

Lock-up compliance tools will matter for underwriters under the 2026 rules

• The 40% lock-up allocation rule starts in 2026 3. Underwriters, the investment banks that structure and sell IPOs, must meet it or buy 1% of the offering up to 3 billion won and hold shares for six months 3. A lock-up is a contractual period when investors agree not to sell newly issued shares.
• Banks now push fewer deals 5. Demand is rising for software that tracks institutional investor commitments, models allocations, and automates compliance reporting to avoid forced share buys.
• Securing large lock-up pledges remains tough 3, with LG CNS at only 15% voluntary lock-ups despite being the largest IPO in three years 3. Underwriters need analytics platforms that flag which institutions honor lock-ups. They also want models that predict commitment likelihood from deal traits or market conditions.