South Korea to Introduce IPO Cornerstone Investor Lock-Up Rule From Nov 13

Cointime update: South Korea’s Financial Services Commission will introduce a cornerstone investor system for initial public offerings to curb post-listing selloffs, the regulator said Tuesday after the government approved the plan. Institutional investors committing to lock up shares for at least six months will receive early allocation under the rules, which take effect November 13 alongside amendments to the Capital Markets Act. The FSC said pre-pricing stable, long-horizon institutional buyers should bolster IPO confidence and ease the so-called IPO pricing problem.