Nam Min-woo, chairman of Dasan Group and a representative figure of Korea's first-generation venture entrepreneurs, has criticized the policy prohibiting dual listings. He warned that a broad ban on dual listings could lead to unintended consequences, urging a reevaluation of the related policies.
Nam made his remarks on social media shortly after Dasan DTS, a subsidiary of Dasan Networks, passed its listing review on July 21. The Korea Exchange had granted approval for the dual listings of Duksan Highmetals' subsidiary Duksan Neppcore and Dasan Networks' subsidiary Dasan DTS the previous day. Dasan DTS is a manufacturer of air-cooled condensers. The Dasan Group acquired the struggling Dongyang T&S, a subsidiary of the Dongyang Group, in 2013 and successfully turned it around.
Nam stated, "Thanks to the support of many, Dasan DTS has passed the KOSDAQ listing review. We acquired the DTS Gunsan factory, which was part of the failed Dongyang Group, for just 2.3 billion won and transformed it into a strong company with 150 billion won in sales and 25 billion won in operating profit." He added, "Such a feat would have been impossible without the group's substantial investment of over 50 billion won and comprehensive support."
He expressed concerns about the prohibition on dual listings, questioning whether it is appropriate to view group management critically in Korea's challenging financial environment. Nam emphasized that the voices of those who demonize the management practices of large corporate groups should be moderated. He argued that the efforts invested in nurturing struggling companies should not be disregarded by blanket regulations stating that "dual listings are not allowed."
Nam noted that while Dasan and Duksan have managed to navigate the dual listing prohibition, the overarching policy against dual listings still needs reconsideration. He stressed that discussions regarding the restructuring of the KOSDAQ market should pay more attention to the voices of the companies involved and relevant associations. He cautioned against the potential pitfalls of overregulation, stating, "We must carefully examine whether we are committing the error of killing the cow to correct the horn."
Quoting a passage from the Dao De Jing, Nam continued his critique of the dual listing prohibition policy, stating, "Governing a large nation is like cooking a small fish." He explained that this proverb suggests that larger nations and organizations should be allowed to operate with autonomy rather than being micromanaged. He concluded, "While these policies may stem from a good intention to protect investors, the current regulations seem to undermine the entrepreneurial spirit that has fostered growth and development in our society, and they need to be reconsidered."
* This article has been translated by AI.
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