FSS Governor Lee Chan-jin Mentions Possibility of Double Listing for Solidigm... "Awaiting Official Interpretation"

Financial Supervisory Service (FSS) Governor Lee Chan-jin suggested on October 19 that the push to list Solidigm, the U.S. subsidiary of SK Hynix, constitutes a double listing.

During the National Policy Committee's parliamentary audit at the National Assembly, People Power Party lawmaker Park Sung-hoon pointed out, "While SK Hynix explained the negative impact of its subsidiary's listing on the parent company's stock price to the U.S. Securities and Exchange Commission (SEC), it has not provided such an explanation to domestic shareholders." In response, Governor Lee stated, "We are continuously monitoring the Solidigm issue," adding, "Both the Financial Services Commission (FSC) and the FSS share the judgment that it conflicts with double listing regulations."

Solidigm is a company launched after SK Hynix acquired Intel's NAND flash and solid-state drive (SSD) business in 2021.

As the company recently accelerated preparations for a listing on the U.S. stock market, concerns have been raised that the interests of existing shareholders of the parent company could diminish.

Authorities have currently established regulations under the stance of "prohibiting double listing in principle while allowing exceptions" to protect shareholders.

Governor Lee's remarks are interpreted to mean that Solidigm's push for a listing falls under the category of double listing, which is prohibited in principle, thereby violating the regulations.

Given that overseas subsidiaries do not undergo double-listing reviews by the domestic exchange, authorities appear to be reviewing whether Solidigm is subject to these review applications.

Governor Lee stated, "Regarding whether [Solidigm] becomes subject to domestic securities registration, the FSC is awaiting an official interpretation," and added, "We will do our utmost to take appropriate measures where possible."

He also added, "If we can convey our concerns to SK Hynix in an appropriate manner, we will proceed with it."

(Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.