Financial authorities have approved the first preliminary listing under the new 'dual listing prohibition with exceptions' system. Duksan High Metal's subsidiary Duksan Nepcores and Dasan Networks' subsidiary DTS have cleared the KOSDAQ listing hurdle. Nam Min-woo, chairman of Dasan Networks and a representative of the first generation of domestic ventures, urged for a reconsideration of the broad dual listing prohibition policy.
According to the Korea Exchange on July 21, the KOSDAQ Listing Committee approved the preliminary listing for Duksan Nepcores and DTS on July 20. The exchange determined that both companies have secured operational and managerial independence and have adequately fulfilled procedures to protect minority shareholders.
As a result, the two companies can now proceed with the public offering process, including submitting a securities registration statement to the Financial Supervisory Service.
This review marks the first case since the Financial Services Commission and the exchange announced reforms to the dual listing system on July 6. The authorities have restructured the system to generally restrict subsidiary listings but allow exceptions when business independence and shareholder protection are sufficiently ensured.
Under the new criteria, parent companies must assess the impact of subsidiary listings on minority shareholders and establish protective measures. They must also follow a procedure similar to the '3% rule' for appointing audit committee members to confirm the opinions of minority shareholders.
Duksan High Metal passed the listing proposal for Duksan Nepcores at an extraordinary shareholders' meeting in May with 72.8% approval of the total issued shares with voting rights. Dasan Networks also approved the listing proposal for DTS at an extraordinary shareholders' meeting last month, with 46.5% of the total issued shares with voting rights and 90.3% of the shares voted in favor.
Following DTS's preliminary approval, Nam Min-woo expressed on his Facebook on July 21 that the broad dual listing prohibition policy should be reconsidered. Nam has served as the chairman of the Venture Business Association (2012), chairman of the Presidential Youth Commission (2013), and currently holds the position of chairman of the Korea Youth Entrepreneurship Foundation.
Nam stated, "The cases of Duksan and Dasan are far removed from the socially contentious split listing of LG Energy Solution, and we have successfully avoided that issue this time. While the policies aimed at protecting investors are well-intentioned, the current regulations seem to undermine the companies and entrepreneurial spirit that have contributed to our society's growth and development, and they need to be reconsidered."
He added, "After acquiring the DTS Gunsan plant, which was part of the Dongyang Group, for 2.3 billion won in 2013, we have grown the company to achieve annual sales of 150 billion won and an operating profit of 25 billion won through over 50 billion won in group-level capital increases and support. The voices of those who view the management style of large corporate groups solely in a negative light should be moderated."
* This article has been translated by AI.
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