South Korea Investigates SK Hynix Unit for Dual-Listing Violation

The Financial Supervisory Service is investigating whether a potential initial public offering of Solidigm, a U.S.-based unit of SK Hynix, violates domestic restrictions on dual-listing. Governor Lee Chan-jin stated during a parliamentary hearing that both the FSS and the Financial Services Commission judge the potential listing as a violation of rules intended to protect minority shareholders.

Under regulations introduced in July, corporate boards must obtain consent from minority shareholders before listing a unit domestically or overseas. Solidigm is reportedly considering an IPO as early as next year, with a potential valuation reaching $150 billion.

SK Hynix has responded to market concerns by stating it will evaluate measures to protect its shareholders. The Financial Services Commission is currently awaiting an official interpretation of securities registration rules to determine the legality of the move.