The Financial Services Commission (FSC) and the Korea Exchange (KRX) held a policy seminar to gather investor and expert views on revising South Korea’s rules for split listings of parent and subsidiary companies, following a government plan announced in March to prohibit such split listings in principle as part of capital market reforms. The planned approach would upgrade relevant rules and the screening process to distinguish split listings that create an asymmetrical profit structure from those considered fair and value-creating for ordinary shareholders. The reform package would also require the parent company’s board to examine the impact of a split listing on shareholders, prepare shareholder protection measures, and maintain ongoing engagement and communication with shareholders, alongside follow-on best practice guidelines once the changes take effect. The FSC and KRX plan to draft a revision proposal in April based on seminar feedback, complete the revision process within the first half of the year, and begin implementing the new rules as early as July.
South Korea Financial Services Commission 2026-04-16
South Korea Financial Services Commission and Korea Exchange outline split listing rule reforms including principle-based prohibition and new board duties
The Financial Services Commission and the Korea Exchange held a policy seminar to gather investor and expert views on revising rules for split listings of parent and subsidiary companies, following a government plan to prohibit such listings in principle as part of capital market reforms. The reforms would refine rules and screening to distinguish harmful from value-creating split listings, require parent boards to assess shareholder impacts and protection measures, and promote ongoing shareholder engagement with best practice guidelines.