First Case of Dual Listing Exception
Overview
The First Case of Dual Listing Exception refers to the first instance in which the Korea Exchange relaxed existing listing regulations to allow the same company to be simultaneously listed on multiple securities markets (e.g., KOSPI and KOSDAQ). This was introduced alongside the 2024 amendment to the Capital Markets Act, with the aim of enhancing corporate financing efficiency and expanding investor choice. The first case drew attention in early 2025 when a specific biotech company, after being listed on KOSDAQ, additionally listed on KOSPI.
Key Details
Background and Legal Basis
- Amendment to the Capital Markets Act: The amended Capital Markets Act, effective July 2024, established the legal basis for companies to list on multiple markets. Previously, dual listing of the same stock was generally prohibited, but it was changed to allow exceptions with exchange approval.
- Need for Deregulation: As global capital markets—such as the New York Stock Exchange (NYSE) and Nasdaq, or the Hong Kong Exchange and Shanghai Exchange—increasingly permitted dual listings, Korea introduced the system to prevent corporate flight abroad and strengthen the competitiveness of its domestic stock market.
First Case: A Biotech
- Company Overview: A Biotech is a biotech company listed on KOSDAQ in 2023, holding new drug development and diagnostic technologies. It applied for a dual listing exception with the Korea Exchange in late 2024 and received approval in January 2025.
- Listing Process: After its KOSDAQ listing, A Biotech's corporate value surged, prompting it to pursue an additional KOSPI listing to secure liquidity and attract institutional investors. The exchange approved the application after reviewing the company's financial soundness, stock price stability, and disclosure transparency.
- Impact: This case opened a path for small and medium-sized enterprises (SMEs) to move between markets according to their growth stage, particularly attracting interest from biotech and tech companies. It is distinguished from a simple transfer from KOSDAQ to KOSPI by being a 'dual listing.'
Institutional Features
- Review Criteria: The exchange comprehensively evaluates a company's financial statements over the past three years, stock price volatility, disclosure violation history, and corporate governance when reviewing dual listing applications. To protect investors in the existing listing market, only the transfer of existing shares—not the issuance of new shares—is permitted for the additional listing.
- Investor Protection Mechanisms: To minimize price differences between the two markets during dual listing, simultaneous quote systems and arbitrage prevention rules are applied. Additionally, companies must submit integrated disclosures for both markets on a quarterly basis.
Latest Trends
As of 2025, three additional companies have submitted applications following the first case of the dual listing exception. The Korea Exchange plans to approve five to seven more companies in the first half of 2025, with major tech companies in the semiconductor and AI sectors showing particular interest. Discussions are also underway to allow dual listings of overseas-listed companies in Korea. This system is evolving in line with global capital market standards, and by 2026, dual listings between KOSDAQ and KONEX are expected to become possible.
Related Topics
- [[Differences between KOSPI and KOSDAQ]]
- [[Amendment to the Capital Markets Act (2024)]]
- [[Initial Public Offering (IPO) Process]]