On July 6, the government released guidelines for dual listing reviews, raising questions about the efforts required to pass the assessment. During a briefing, the Financial Services Commission highlighted Duksan Nepcores as a model example of compliance with these guidelines.
Duksan Nepcores, a subsidiary of Duksan High Metal, aimed for a public listing in the first half of this year. In May, the company held a separate shareholders' meeting for common shareholders of its parent company to obtain approval for the listing. The major shareholders did not push the decision unilaterally. Approximately 80% of the investors, including common shareholders, participated, resulting in over 90% approval for the dual listing proposal. During this process, the company also proposed measures for shareholder protection, such as stock dividends and increased dividends. A representative from the Financial Services Commission stated, "The disclosure documents indicate that Duksan High Metal followed the board approval process, and the voting results from common shareholders met the minority shareholder majority (MoM) standard, effectively fulfilling the dual listing criteria required by the new guidelines."
In the market, DTS, a subsidiary of Dasan Networks, is also cited as a leading example. This company has followed procedures mindful of the new regulations, including obtaining common shareholder consent after applying for preliminary listing review and proposing shareholder return plans.
Many companies are planning to pursue dual listings after July. Major corporate affiliates such as Hanwha Energy, HD Hyundai Robotics, and LS E-Six Solutions are expected to undergo dual listing reviews in the future. Among these, HD Hyundai Robotics is anticipated to require shareholder approval, as it was established through a physical division of HD Hyundai. LS E-Six Solutions, which withdrew its domestic listing plans in January, is expected to face stringent individual reviews if it seeks to relist, although it may not need to obtain shareholder consent.
Go Young-ho, a capital markets division chief at the Financial Services Commission, commented on the applicability of the guidelines to companies like CJ Olive Young and HD Hyundai Robotics, stating, "We will need to comprehensively review governance and business structures after they actually apply for preliminary listing reviews to make a determination."
* This article has been translated by AI.
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