A company listed on the New York Stock Exchange (NYSE) is reportedly in discussions to pursue a Korean Depository Receipt (KDR) listing on the South Korean stock market. This move is considered unusual, marking a significant elevation in the status of South Korea's capital market.
According to financial investment industry sources on June 30, an NYSE-listed company is currently negotiating with the Korea Exchange regarding the KDR listing. However, specific details such as the timing of the listing and the name of the company have not been disclosed.
KDRs are stock receipts issued by the Korea Securities Depository based on the underlying shares deposited with overseas custodians. This mechanism allows foreign companies to maintain their overseas listing status while raising funds from domestic investors, who can invest in these companies without needing a separate overseas stock account.
Industry experts believe that if this KDR listing is successful, it could broaden the scope for foreign companies to list in South Korea. While previous KDR listings have primarily involved companies from Asia, the inclusion of U.S. firms could enhance the international standing of South Korea's capital market and improve access for foreign companies to the domestic market.
* This article has been translated by AI.
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