Korea raises shareholder hurdle for parent-backed subsidiary IPOs

The Financial Services Commission and the Korea Exchange on Monday unveiled draft guidelines that would make it harder for listed parent companies to pursue dual listings by separately listing subsidiaries.

The move is aimed at strengthening minority shareholder protections and tackling the so-called Korea discount: Reforms would lengthen the IPO process and require parent companies to demonstrate that a subsidiary listing enhances, rather than undermines, shareholder value.

The FSC said it rede ...