SK Hynix's subsidiary Solidigm is facing difficulties in its U.S. stock market debut, causing anxiety among shareholders of Hyundai Motor, Naver, and Kakao. These companies are also considering overseas listings for their subsidiaries, which could face similar scrutiny.
Eo Eok-yeon, chairman of the Financial Services Commission, stated during a National Assembly audit on the 22nd that Solidigm's U.S. listing is subject to "dual listing regulations." Previously, Lee Chan-jin, head of the Financial Supervisory Service, indicated that there is a possibility of it falling under dual listing criteria. Both financial authorities have expressed that overseas listings could be included in the scope of dual listing regulations.
The authorities' assessment is not limited to Solidigm alone; it could apply to other companies with similar governance structures. As dual listing regulations have tightened, Solidigm has become a focal point in discussions about overseas listings, which could set a benchmark for other firms considering similar moves to avoid domestic regulations.
Currently, Hyundai Motor and Boston Dynamics are cited as structurally similar cases. Boston Dynamics has a U.S. entity in its governance structure, with HMG Global holding 56.4% of its shares, which are shared among Hyundai Motor, Kia, and Hyundai Mobis. This structure parallels that of Solidigm.
Hyundai Motor Group is considering a Nasdaq listing for its U.S. robotics subsidiary, Boston Dynamics. If Boston Dynamics pursues a U.S. listing, the boards of Hyundai Motor, Kia, and Hyundai Mobis may need to evaluate the impact on existing shareholders and develop protective measures. Concerns have been raised that while the listing could facilitate capital raising, it might also separate corporate value, potentially burdening the parent company's stock price.
Naver shareholders are also closely monitoring the situation. Naver is planning to pursue an IPO for its fintech subsidiary, Naver Financial, through the acquisition of Dunamu, aiming for a listing by 2031. There is speculation about the possibility of Naver Financial listing in the U.S.
Kakao shareholders are also keeping an eye on developments. Kakao Mobility submitted documents related to American Depositary Receipts (ADRs) to the U.S. Securities and Exchange Commission (SEC) in July, but the Kakao board resolved last month to oppose pursuing a U.S. listing. The market atmosphere, which emphasizes the rights of minority shareholders, is expected to influence future listing decisions.
Recently, a company that withdrew its plans for a U.S. listing is Myungshin Industry, a manufacturer of automotive parts. On the 20th, it announced via the electronic disclosure system (DART) that it opposed the listing of its subsidiary, Simwon America. Myungshin Industry stated, "After gathering opinions through a shareholder survey from the 14th to the 16th, we believe a review of shareholder communication procedures and protective measures is necessary."
* This article has been translated by AI.
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