South Korea’s IPO bust clouds equity markets as Chaebol structure restrains listings

South Korea's equity IPO activity has plummeted this year as efforts to boost corporate valuations run into trouble around governance reforms and the high amount Chaebols, or family-run conglomerates. South Korea saw 15 new listings in the year to June 3, with proceeds totaling around $700 million, according to LSEG data. By comparison, new listings averaged 80 per year between 2020 and 2025, with around $8 billion, the data show. Malaysia's new listings and proceeds almost double South Korea's. By contrast, the Kospi is the top-performing major index worldwide , more than doubling in value in the year to Monday. Chaebols, which were once central to South Korea's industrial development, are now "more of a hindrance than a help for creating new, independently listed champions," according to Polka Mishra, partner at Javelin Wealth Management in Singapore. South Korea's inheritance tax of 50% for amounts exceeding 3 billion won ($2 million) gives conglomerates an incentive to keep valuations and free float low, she said. At issue: In 2024, South Korea launched the "Corporate value-up initiative" to end the so-called "Korea discount," in which shares trade at lower levels than overseas peers. The country made three rounds of amendments to the Commercial Act to improve minority shareholder protection and corporate governance. …