[Edaily Reporter Kwon Oh Seok ] The domestic initial public offering (IPO) market shrank to about half its size compared to the same period last year in the first half of this year, facing an unprecedented slump. Analysts attribute this to the relative decline in the appeal of IPOs, driven not only by the concentration of stock market funds on certain large-cap stocks—such as semiconductor companies—but also by the authorities’ announcement that they plan to tighten listing regulations.

According to the financial investment industry on the 2nd, the number of new listings on the KOSPI and KOSDAQ markets in the first half of the year (excluding SPAC mergers, relistings, and KONEX listings) totaled just 17 companies. This represents a decline to less than half the 38 companies listed in the first half of last year (2025) and is a sluggish figure even compared to 2024 (29 companies).
Not only has the number of listed companies decreased, but the total IPO fundraising volume has also dropped significantly. The total fundraising volume for the first half of the year was 1.1327 trillion won, which is roughly half the 2.2095 trillion won recorded in the first half of last year. Analysts note that the IPO market as a whole has frozen, as not only has the number of companies seeking listings decreased, but even those that had already passed preliminary screening have chosen to postpone or suspend their IPO schedules.
The slump was particularly pronounced in the KOSPI market. In the first half of last year, LG CNS, Seoul Guarantee Insurance Company, CK Solution, and d'Alba Global led the IPO market with their listings, but in the first half of this year, the only new listing on the KOSPI was Kbank, an internet-only bank. Kbank, which succeeded in listing on the KOSPI on its third attempt, barely managed to exceed its offering price on the day of its listing. In the KOSDAQ market, the number of new listings fell from 34 last year to 16 this year.
One encouraging sign, however, is that the average mandatory holding commitment rate for the first half of the year rose significantly to 46.32%, up 39.26 percentage points from last year. This is due to the implementation this year of a system requiring that at least 40% of the shares allocated to institutional investors be prioritized for institutions that have made mandatory holding commitments. A mandatory holding commitment means that an institution promises not to sell the shares it has been allocated for a certain period after receiving them.
Market observers point to the extreme concentration on large-cap KOSPI stocks during the first half as one of the main causes of the IPO slump. Above all, there are suggestions that the government’s decision to significantly overhaul listing regulations—including restrictions on dual listings and the delisting of penny stocks—has dampened the willingness to pursue IPOs in the first place.
Kang Young-hoon, an analyst at SamsungSecurities, assessed the situation, stating, “Due to various issues such as restrictions on dual listings and stricter screening regulations, the number of major IPOs and the total number of listings has decreased, leading to a significant shortage of offering amounts and a persistent imbalance between supply and demand in the IPO market.”