Split IPOs Blocked from August 3, Startup Acquisition Structures Will Change First(fsc.go.kr)

- With approval from the Financial Services Commission, from August 3, it will in principle be prohibited for a listed parent company to have its subsidiary listed separately. - For subsidiaries created by physical spin-offs, shareholder consent from the parent company is mandatory, and the '3% rule' limiting voting rights of controlling shareholders to 3% applies to voting. - This effectively narrows the exit routes for listed companies acquiring startups and later listing them separately. - If current acquisition offers were based on exits through listing, it is appropriate to reconsider the cash proportion and earn-out conditions.