[Edaily Reporter Kwon Oh Seok ] The domestic initial public offering (IPO) market shrank to half its size compared to the same period last year in the first half of this year, experiencing an unprecedented slump. Although many stocks got off to a hot start immediately after listing, trading at “double” (twice the offering price) or “quadruple” (four times the offering price), a number of them subsequently plummeted below their offering prices. Analysts attribute the decline in IPO appeal to the concentration of stock market funds on certain large-cap stocks, such as semiconductor companies, during the first half of the year, compounded by announcements of plans to tighten listing regulations.

According to the financial investment industry on the 2nd, the number of newly listed companies on the KOSPI and KOSDAQ markets in the first half of the year (excluding SPAC mergers, relistings, and KONEX listings) totaled just 17. This represents a decline to less than half the 38 companies listed in the first half of last year and is also lower than the figure for 2024 (29 companies).
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, but this year, the only new listing on the KOSPI was the internet-only bank #Kbank. In the KOSDAQ market, new listings fell from 34 last year to 16 this year.
Even stocks that garnered high expectations from investors on their first day of trading now appear to have lost momentum. In the first half of this year, six stocks—△#MakinaRocks Co., Ltd., △#Poled Co., Ltd., △#IMBiologics Corp., △#COSMO ROBOTICS CO., Ltd., △#AXBIS CO.,LTD., and △#ESteem Co., Ltd.—closed at four times their offering price on their first day of trading. MakinaRocks Co., Ltd. rose 300% from its IPO price of 15,000 won to a closing price of 60,000 won on its listing day; Poled Co., Ltd. rose from 5,000 won to 20,000 won; and COSMO ROBOTICS CO., Ltd. rose from 6,000 won to 24,000 won—all hitting the “quadruple-up” mark (a fourfold increase from the IPO price followed by a price limit up).
ESteem Co., Ltd. and AXBIS CO.,LTD. also soared to four times their IPO prices on their first day of trading, rising from 8,500 won to 34,000 won and from 11,500 won to 46,000 won, respectively. In addition, DEOKYANG ENERGEN CORPORATION rose 248.5% and Kanaph Therapeutics Inc. rose 153.0%, marking strong performances.
However, many of these stocks are currently trading below their IPO prices or have given up a significant portion of their initial gains. On that day, Poled Co., Ltd. fell 25.10% from its IPO price to 3,745 won, and ESteem Co., Ltd. also halved in value, trading at 3,960 won. #MEZOO Co., Ltd. rose as high as 39,000 won on its listing day but is currently trading at 13,780 won, down 36.2% from its IPO price of 21,600 won.
In particular, #PIECE PEACE STUDIO Co., Ltd. (-75.95%) and #HANPASS CO.,Ltd. (-69.95%) recorded declines of around 70% compared to their IPO prices, marking the steepest drops among the newly listed stocks. As of that day, the only stocks trading above their IPO prices were COSMO ROBOTICS CO., Ltd., MakinaRocks Co., Ltd., and RecensMedical, Inc.
The performance of Kbank, which was touted as a major IPO of the first half of the year, was also unsatisfactory. Kbank listed at an IPO price of 8,300 won, but its closing price on the listing day was just 8,330 won (up 0.36%), ending the day at a level nearly identical to the IPO price. On this day, it closed at 5,600 won, down 32.53% from the IPO price.
Market observers cite two main causes for the IPO slump: the concentration of capital in large-cap semiconductor stocks such as SamsungElectronics and SK hynix, and the lack of major new leading stocks to serve as alternatives. As AI (artificial intelligence) semiconductor stocks continue to drive the market, a pattern has solidified in which newly listed stocks quickly lose the initial event-driven buying momentum and subsequently face a supply-demand gap.
Above all, the prevailing view is that the government’s decision to significantly overhaul listing regulations—including restrictions on dual listings and the delisting of penny stocks—has dampened enthusiasm for IPOs. From a corporate perspective, there is now a stronger incentive to postpone listing attempts or review them more cautiously. Kang Young-hoon, an analyst at SamsungSecurities, noted, “Due to various issues such as restrictions on dual listings and stricter screening regulations, the number of major listings and the total number of listings has decreased, leading to a significant shortage of public offering proceeds and a persistent imbalance between supply and demand in the public offering market.”
Lee Geon-jae, head of the KOSDAQ Research Center at IBK Investment & Securities, also explained, “In the past, it was common for large corporations or subsidiaries of KOSDAQ-listed companies to list separately to recoup funds, but this process often resulted in existing shareholders suffering losses. The decision to restrict this practice has contributed to the decline in the number of IPOs.”
However, he noted that this does not have to be viewed solely in a negative light, adding, “South Korea has a relatively large number of listed companies relative to the size of its economy. We must now enter a phase of qualitative growth focused on strengthening fundamentals rather than quantitative expansion.”