Financial Services Commission Chairman: Solidigm's US Listing Subject to Double-Listing Regulations

Financial Services Commission Chairman Lee Uk-heon stated today (October 22) that SK hynix's push to list its US subsidiary, Solidigm, falls under current double-listing regulations, and that SK hynix and SK Square will incur obligations as parent companies due to governance structure.

During the National Policy Committee's general audit at the National Assembly this morning, when People Power Party lawmaker Park Sung-hoon asked, "Do you agree with the Financial Supervisory Service governor's remark that Solidigm's US listing constitutes a double listing?" Chairman Lee replied, "Yes. It is subject to the double-listing guidelines."

He added, "As parent companies, SK Square and SK hynix must fulfill five obligations based on the fiduciary duty to shareholders."

According to the double-listing regulations announced by the FSC and the Korea Exchange, to exceptionally be granted permission for a double listing—which is prohibited in principle—the parent company must fulfill five obligations based on the fiduciary duty to shareholders: conducting a shareholder impact assessment, formulating shareholder protection measures, engaging in shareholder communication, obtaining board resolutions for or against, and making disclosures.

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

It has a multi-layered governance structure running from SK Inc. to SK Square, SK hynix, AI Company, and finally Solidigm.

Concerns have been raised recently that the interests of existing shareholders of the parent company could diminish amid news that Solidigm is pursuing a listing on the US stock market.

Financial Supervisory Service Governor Lee Chan-jin also stated during the National Policy Committee audit on October 19 that both the FSC and the FSS view Solidigm as subject to the double-listing regulations.

In response to a question from Democratic Party of Korea lawmaker Lee Kang-il asking whether domestic double-listing regulations apply when pursuing overseas listings like Solidigm's, Chairman Lee confirmed, "When establishing the double-listing guidelines, they apply to both overseas and domestic listings."

However, regarding whether Solidigm has an obligation to submit a securities registration statement to domestic authorities, he avoided a direct answer, stating, "For now, there has been no official announcement that it will list, nor are there any concrete details."

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