The release of detailed regulations and draft guidelines regarding the prohibition of duplicate listings—where a parent company spins off a business unit to list it separately—is imminent.

It is understood that the process is likely to be completed before the presidential briefing scheduled for July 15.

According to the financial investment industry, the draft guidelines and detailed regulations being prepared by the Financial Services Commission are expected to be announced as early as next week.

With the presidential briefing scheduled for July 15, there is a high possibility that the work will be finalized before that date.

As the prohibition of duplicate listings was first announced and reported to the president during the Meeting for Capital Market Stability and Normalization held at the Blue House in March, it is expected that results will be delivered within the deadline.

At the time of the announcement, financial authorities stated they would prepare for implementation by July.

To implement the ban on duplicate listings, the Korea Exchange regulations must be amended. Initially, financial authorities and the Korea Exchange planned to release the guidelines early this month, considering the necessary procedures.

Although the schedule is tight, implementation within the target period is possible if the pace is accelerated through extraordinary meetings.

The delay in the announcement of the guidelines appears to have been influenced by intense opposition from the industry.

This is because venture capital firms and private equity funds argue that such measures constitute excessive regulation that hinders the recovery of investor capital.

In particular, criticism has emerged that the measures excessively restrict subsidiary listings, as proposals such as requiring shareholder approval for subsidiary IPOs, limiting the voting rights of controlling shareholders to 3% when general shareholders of the parent company agree, and adopting a majority-of-minority voting system—which excludes the voting rights of controlling shareholders—have been discussed as likely options.

Conversely, institutional investors and academia argue that duplicate listings are a key cause of the Korea Discount and that measures for a principled ban are necessary.

A representative proposal is the mandatory requirement for shareholder consent, which would fundamentally block such listings without the approval of general shareholders.

Because duplicate listings often involve spinning off a parent company's core business unit, they frequently hit the parent company's stock price and have been cited as a major cause of the Korea Discount.

There have been multiple analyses within the industry suggesting that if the issue of duplicate listings is resolved, the KOSPI could surpass the 10,000-point mark.

Reported by Kim Minjeong | Video by Kim Na-eun | Graphics by Yang Hye-min | Produced by SBS Digital News