Solidigm US IPO faces South Korea dual-listing scrutiny

South Korea’s financial regulators are examining whether a potential US initial public offering by Solidigm, a subsidiary of SK Hynix, would breach domestic dual-listing restrictions. Financial Supervisory Service Governor Lee Chan-jin told a parliamentary hearing on October 19 that both his agency and the Financial Services Commission had assessed that the listing could violate the rules, according to Economic Times Markets.

Lee was responding to questions about safeguards for minority shareholders in SK Hynix if the subsidiary went public in the United States. His remarks signal a possible regulatory obstacle, rather than a final ruling that an offering is unlawful.

Shareholder consent and filing requirements in focus

South Korea tightened its dual-listing framework in July to strengthen protections for minority investors. Under the revised rules, company boards must secure minority shareholders’ consent before listing a subsidiary, whether in South Korea or abroad.

A separate compliance question concerns whether Solidigm’s proposed US offering would require a securities registration filing in South Korea. Lee said the Financial Services Commission was awaiting an official interpretation on that requirement.

The potential transaction has also raised concerns about what a separately traded subsidiary could mean for the parent company’s valuation and ownership structure. Earlier in October, SK Hynix said it would assess measures to protect its shareholders in response to market concerns about a possible Solidigm IPO.

Reported valuation is not a confirmed offering price

Reuters reported in September that Solidigm was considering an IPO as early as 2027, potentially valuing the US subsidiary at up to $150 billion. That figure is a reported possible valuation—not an announced amount to be raised through the sale of shares.

The timing and valuation remain prospective. The regulatory review centres on whether the potential listing complies with South Korea’s rules and how minority shareholders would be protected.