This article appeared on Signal, the capital markets service, at 1:32 p.m. on August 23, 2026.
LS MnM (formerly LS-Nikko Copper), a subsidiary of LS Corp. (006260.KS), has decided to move toward an initial public offering. Even under a dual-listing structure, the recent stock market debuts of Duksan Neolux Core and DTS have prompted JKL Partners, the financial investor, to postpone recouping its investment for the time being. Still, given the persistent scrutiny of listings by conglomerate affiliates, some analysts suggest the IPO may be aimed at fulfilling a duty of care under a shareholder agreement.
According to investment banking sources on the 23rd, JKL Partners is in talks with LS to defer recovering the funds it previously invested in LS MnM. The two have not selected an underwriter or set a specific timeline, but they are exploring ways to carry out an IPO within the bounds of the law. Several investment banking officials said the discussions are aimed at reviewing a listing in line with the guidelines rather than repaying the investment, adding that they have left open the option of extending the IPO deadline, currently set for next year, if necessary.
LS MnM was established as a joint venture between LS and Japan's JKJS. When it became a wholly owned subsidiary of LS in 2022, it committed to a stock market listing by 2027. At the time, to acquire JKJS's 49.9% stake for 933.1 billion won ($690 million), LS issued 470.6 billion won in exchange bonds tied to LS MnM shares to JKL Partners. Under the shareholder agreement reached then, if LS MnM fails to go public by August 2027, LS must compensate JKL Partners for its investment plus a certain internal rate of return (IRR).
LS had initially considered the option of repaying the funds to JKL Partners. Amid heightened scrutiny of listings by conglomerate affiliates, LS MnM's listing had become uncertain after LS's fourth-tier subsidiary Essex Solutions withdrew its exchange review earlier this year. LS had also returned invested funds to financial investors in its electric-vehicle parts affiliate LS EV Korea (EVK) and its winding-wire subsidiary LS Eco Advanced Materials, judging that a listing would be difficult for the time being.
The mood shifted right after dual-listing guidelines were established in July. A listing became possible if a company obtains consent from parent-company shareholders under the 3% rule applied to appointing audit committee members, or puts in place comparable protective measures. Duksan Neolux Core and DTS, having secured parent-shareholder consent, subsequently passed the exchange review, and subsidiaries of listed companies such as CoAsia SEMI, Morpheus and Cryos have also begun preparing IPOs. Another investment banking official said, "As far as I know, LS has also repeatedly queried securities firms about the know-how for dual-listing reviews."
But there are many hurdles to clear. Under the rules, a low-weight subsidiary is exempt from parent-shareholder consent if its assets at the end of the most recent fiscal year and its three-year average revenue and operating profit each come to less than 10% of the listed parent's. By contrast, LS MnM's average standalone revenue and operating profit for 2023 to 2025 were 11.9574 trillion won and 240.6 billion won respectively — far more than 10% of LS's consolidated averages over the same period (17.3418 trillion won and 1 trillion won). In such a case, the impact on parent-company shareholders is deemed significant, requiring stronger shareholder protection.
For this reason, some interpret the LS MnM listing as likely to amount to a formality. Under the shareholder agreement, if LS fails to do its utmost in preparing LS MnM for listing, it must accept penalties such as guaranteeing additional returns to JKL Partners. Because a listing of LS MnM is not impossible under the current legal framework, LS also needs to faithfully fulfill its duty of care to avoid future disputes. In fact, Keystone Partners, a financial investor in LS EVK, and LS Cable & System are engaged in a legal battle over responsibility for a failed listing.
Meanwhile, an LS official said, "There is nothing under discussion regarding a listing of LS MnM."
