South Korean regulators warn Solidigm US IPO may breach dual-listing rules
South Korea's Financial Supervisory Service said a potential US listing of SK hynix subsidiary Solidigm could conflict with domestic dual-listing restrictions, though no decision has been made yet.
During a parliamentary audit, Financial Supervisory Service official Lee Chan-jin said that a US initial public offering for Solidigm, the NAND flash and SSD arm spun out of SK hynix after its purchase of Intel's business, appears to run afoul of South Korea's dual-listing restrictions. He noted that both the Financial Services Commission and the FSS share this view, but the agencies have not yet decided if they can intervene.
The remarks came after People Power Party representative Park Seong-hoon criticized SK hynix for highlighting potential share-price impacts of the US listing in its filings without offering the same explanation to Korean investors. Lee said regulators are waiting for a legal reading on whether Solidigm would be subject to Korean securities filing requirements and did not rule out the possibility of blocking the listing. He added that the authorities will raise the issue with SK hynix and take appropriate action where possible.
Why it matters
The case could affect how South Korean firms list abroad and protect domestic shareholders.
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