Major companies including Musinsa and Sono International are preparing to file for preliminary listing reviews with the aim of joining the KOSPI within the year, a move expected to breathe life into the initial public offering (IPO) market. The IPO market has fallen into a severe slump this year, with K Bank standing as the only new listing on the Korea Composite Stock Price Index (KOSPI) amid dual-listing regulations.
According to the investment banking (IB) industry, Sono International's preliminary listing review filing is said to be imminent, sources said Tuesday. It would be the second KOSPI preliminary review filing this year, following Hana Office REIT. In effect, it becomes the first, as Hana Office REIT withdrew its listing. "Sono International's preliminary review filing is set to go in soon," an IB industry official said. Sono International's listing is being managed by Mirae Asset Securities and Daishin Securities.
This year's KOSPI IPOs have been unusually quiet due to the fallout from dual-listing regulations. Actual listings amounted to just one, K Bank, marking the lowest first-half figure since 2022. Specifically, nine companies joined the KOSPI in the first half of 2023, while six and four companies did so in 2024 and 2025, respectively. As no company is officially undergoing the IPO process this year, the market is expected to remain subdued for some time.
The biggest reason that KOSPI listings have become nowhere to be found is cited as dual-listing regulations. While the government has effectively put forward a principle of banning dual listings by large companies, the preparation of detailed guidelines has been delayed day after day, prolonging the gap. The dominant view had been that an advance notice of rule revisions would come early this month, but as the reconciliation of differences between financial authorities and the Korea Exchange has dragged on, no precise announcement schedule has emerged. Another industry official explained, "The KOSPI IPO market has slumped due to the impact of strengthened dual-listing regulations," adding, "The exchange's listing review standards have also been tightened compared with before, making it not easy to proceed with listing procedures."
Against this backdrop, companies including Sono International, which is set to file for preliminary review, as well as Musinsa and Megazone Cloud, are poised to launch their IPOs. All of these companies are counted as "IPO heavyweights" with valuations projected in the trillions of won. Musinsa and Megazone Cloud are expected to file for preliminary review around August, when half-year reports are due, at the earliest. An industry official noted, "Musinsa is preparing with the goal of filing for preliminary review in the second half, and the timing is projected for after the half-year report deadline ends," adding, "In the case of Megazone Cloud, as its earnings are improving, it is expected to be able to complete its IPO smoothly."
IPOs by large companies are expected to continue facing difficulties. HD Hyundai Robotics, SK Plasma, SK ecoplant, and Hanwha Energy have completed the selection of listing underwriters, but as the gap in dual-listing regulations drags on, they are stuck in limbo. Some voice concerns that long-term growth potential could deteriorate as conglomerate affiliates are blocked from entering the stock market. An industry official said, "Going forward, the IPO market will be reshaped around technology-focused companies or those where financial investors (FIs) are major shareholders," adding, "It is inevitable to question whether such companies can provide investors with the investment returns they expect."
