South Korea Says SK Hynix's Solidigm Listing Could Violate Rules, Reports Say

3-line summary

• South Korea's Financial Supervisory Service chief Lee Chan-jin told a parliamentary hearing that the FSS and Financial Services Commission determined SK Hynix's proposed listing of US subsidiary Solidigm would violate rules against dual listings, in which both a parent and subsidiary are publicly traded, as it could dilute parent shareholders' economic interests; the FSC has not yet issued a formal interpretation, and regulators are also reviewing whether Solidigm, a foreign entity, is subject to Korean securities disclosure requirements.
• Solidigm was formed in 2021 when SK Hynix acquired Intel's NAND flash and SSD business; Reuters reported last month that the US subsidiary is considering an IPO as early as 2027 that could raise up to $15 billion and value the unit at up to $150 billion, with proceeds from new shares to outside investors reducing the share of profit currently flowing entirely to SK Hynix.
• Regulators plan to review appropriate measures and convey their concerns to SK Hynix, which said it is reviewing ways to strengthen Solidigm's competitiveness with no decision made; SK Hynix shares fell 2% to 1,247,000 won Monday, while the Kospi rose 0.8% to 5,715.9.

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