Regulatory Alerts2026-07-30 | 87441Added · Updated
FSC Proposes Revised Rules under FSCMA for Introducing Preliminary Book Building and Cornerstone Investor
The Financial Services Commission proposes revisions to the Enforcement Decree of the Financial Investment Services and Capital Markets Act (FSCMA) and subordinate regulations, effective November 13, 2026, to introduce preliminary book building and a cornerstone investor system. Preliminary book building allows IPO lead managers to survey market demand from institutional investors with at least KRW30 billion in entrusted assets, requiring non-disclosure agreements. The cornerstone investor system requires eligible investors to possess equity capital or entrusted assets at least twenty times the value of subscribed IPO shares and observe staggered lockup periods of six, eight, and ten months for allocated shares. Pre-allocation caps for cornerstone investors are set at up to 20% total (10% per investor) for KOSPI IPOs and up to 30% total (20% per investor) for KOSDAQ IPOs from the institutional investor portion, with prohibitions against agreements with specially interested parties.