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South Korea's IPO Market Surges 14.9% in 2025, Fueled by Liquidity

IPO proceeds in South Korea rose 14.9% year-on-year in 2025, reaching 4.57 trillion won, driven by strong market liquidity. A total of 77 companies went public, led by LG CNS's 1.19 trillion won offering. Regulatory changes are set for 2026, doubling the share allocation for long-holding institutional investors to over 40%. The bourse operator is also tightening IPO and delisting rules to bolster market integrity and confidence.

Key Points: 2025 South Korea IPO Proceeds Rise 14.9% to $3.19B

  • Proceeds hit 4.57 trillion won ($3.19B)
  • 77 companies listed in 2025
  • LG CNS raised largest IPO at 1.19T won
  • New 2026 rules for institutional investors
2 min read

IPO proceeds in S. Korea rise 14.9 pc on-year in 2025

South Korea's IPO proceeds hit 4.57 trillion won in 2025, a 14.9% annual increase. Explore the key deals, regulatory shifts, and 2026 outlook.

"Momentum for large IPOs is expected to remain strong next year amid abundant liquidity, though new regulations could remain a factor. - IR Kudos Corp"

Seoul, Dec 29

The total proceeds from initial public offerings in the South Korean stock market rose 14.9 per cent in 2025 from a year earlier, backed by increased liquidity, data showed on Monday.

The proceeds from IPOs stood at 4.57 trillion won (US$3.19 billion) this year, up from last year's 3.97 trillion won, according to the data from consulting service provider IR Kudos Corp, reports Yonhap news agency.

A total of 77 companies made their debuts on the main bourse KOSPI and the tech-heavy KOSDAQ markets in 2025, compared with 78 companies going public a year earlier.

LG CNS Co., an information technology affiliate of LG Electronics Inc., raised the largest amount of IPO funds at 1.19 trillion won, followed by DH Shipbuilding Co. with 500 billion won.

"Momentum for large IPOs is expected to remain strong next year amid abundant liquidity, though new regulations could remain a factor," the company said in a release.

Starting next year, more than 40 percent of IPO shares will be allocated to institutional investors that commit to holding the shares for a certain period, up from the current 20 percent.

The measure comes amid criticism that some institutional investors have reaped quick profits by selling IPO shares on the first day of trading.

Meanwhile, South Korea's bourse operator said it will introduce tighter rules for an initial public offering (IPO) and delisting as part of efforts to shore up market confidence.

The Korea Exchange (KRX), the sole operator of the country's stock market, is reviewing a set of enhanced regulations for newcomers and an exit of those who fail to maintain listing requirements.

The Financial Services Commission (FSC) said earlier that from 2026, over 40 per cent of IPO shares will be first allotted to institutional investors who guarantee the holdings of IPO shares for a certain period, usually three or six months.

Currently, about 20 percent of IPO shares are sold to such institutional investors to help with the smooth debut of a new company on the stock market.

The FSC has said it will also revamp delisting regulations to speed up the exit of companies that fail to meet a set of requirements.

- IANS

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Reader Comments

P
Priya S
$3.19 billion is a decent number, but honestly, it feels small compared to the potential of our own markets. The Indian startup IPO pipeline is massive! Still, good to see global markets remain active. 📈
R
Rohit P
The focus on tightening delisting rules is crucial. We have too many zombie companies on our exchanges. A healthy market needs both a smooth entry and a strict exit policy. Korea is on the right track.
S
Sarah B
As someone who invests in Asian markets, this is positive news. The increase in proceeds despite one less listing shows larger, more mature companies are going public. LG CNS raising 1.19 trillion won is a sign of confidence.
V
Vikram M
Abundant liquidity driving IPOs is a global theme. But the new rule allocating more shares to long-term institutional investors is a masterstroke. It protects retail investors from first-day volatility caused by quick flips. More countries should adopt this.
K
Karthik V
Respectfully, while the 14.9% growth sounds good, the article repeats the same regulatory point multiple times. Could have used that space to compare with other Asian markets like Japan or India. Just my two paise.

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