South Korea IPO market tumbles, low‑PBR disclosure rules to debut in November

In 2024, 20 companies debuted on South Korea's main KOSPI and KOSDAQ exchanges, but 18 fell below their offering price after a sharp market sell‑off. The steepest decline was recorded by StradVision, whose shares dropped 78.13% from the IPO level, while several other newcomers fell more than 50%. Only CosmoRobotics and MakinaRax posted gains, up 165.33% and 59.67% respectively, benefiting from investor interest in robotics and AI.

Separately, the Financial Services Commission and the Korea Exchange announced a new low‑PBR (price‑to‑book ratio) disclosure regime that will start in November. Companies that remain in the bottom 25% of KOSPI or the bottom 10% of KOSDAQ for three consecutive years will be listed publicly each semi‑annual cycle, affecting an estimated 120‑220 firms. Firms that submit a concrete value‑enhancement plan can earn a one‑year exemption, while those lagging for six years receive no relief. The measures aim to improve corporate governance and market transparency.