PiCK
FSC Chief Says Solidigm Listing Plan Would Trigger Dual-Listing Rules, Obligations for Parent Firms
Summary
- Kim Byoung-hwan, chairman of the Financial Services Commission, said a local listing push by SK hynix’s U.S. subsidiary Solidigm would be subject to dual-listing rules.
- Kim said SK Square and SK hynix, as parent companies, must fulfill five key obligations based on their fiduciary duty to shareholders.
- Kim said the dual-listing guidelines apply to both overseas and domestic listings.
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Kim Byoung-hwan, chairman of South Korea’s Financial Services Commission, said efforts to pursue a local listing for Solidigm, SK hynix’s U.S. subsidiary, would fall under the country’s dual-listing rules.
Kim made the remarks on Oct. 22 during a comprehensive audit by the National Assembly’s Political Affairs Committee. He testified that Solidigm’s listing push is subject to the dual-listing guidelines. SK Square and SK hynix, as parent companies, would also have to fulfill five obligations based on their fiduciary duty to shareholders.
Under current rules, a parent company seeking a dual listing must complete five steps: assess the impact on shareholders, prepare shareholder-protection measures, communicate with shareholders, secure a board resolution approving or opposing the plan, and make disclosures. Under dual-listing rules set by the Financial Services Commission and the Korea Exchange, those procedures are required when a company seeks an exception to a dual listing that is, in principle, prohibited.
Kim also addressed whether the rules apply to overseas listings. In a question-and-answer session with Democratic Party lawmaker Lee Kang-il, he said the dual-listing guidelines apply regardless of whether the listing is overseas or domestic.
He stopped short of saying whether a securities registration filing would be required in South Korea. There has been no formal announcement or concrete plan for the listing yet, Kim said.
Solidigm traces its origins to SK hynix’s 2021 acquisition of Intel’s NAND flash and solid-state drive, or SSD, business. In the ownership structure, AI Company sits above Solidigm, followed by SK hynix, SK Square and SK Inc.
