IPO & Capital Markets

Raising Funds in Korea

Samil PricewaterhouseCoopers (“Samil PwC”) is the leading professional services firm in Korea. With over 3,800 professionals, we are also by far the largest professional services organization. As a member firm of the global PricewaterhouseCoopers network, we enjoy seamless access to wealth of resources provided by over 180,000 professionals in 766 offices located across 158 countries, reinforcing our leadership in the market. We work with global and domestic companies that are pre-eminent or rapidly emerging in their chosen fields.

Recently the global capital markets has undergone record levels of turbulence leading to uncertainty to the participants of these capital markets. Undoubtedly, the volatility will continue in the upcoming years which will entail dynamic changes to regulatory environments, access to global capital markets and increase cross border issues. These events will set the precedent for the development of global capital markets in the future. Successful companies must be responsive to the turbulent global capital markets and have trusted advisors who can provide quality advisory and assurance services.

Our Capital Markets Group in Korea is unrivaled. In 2008, we advised many multinational companies with IFRS conversions and adoptions, cross border transactions and US reporting services. Our effective use of multi-disciplinary teams, together with knowledge and experience enable us to meet the demanding business needs of our clients amid the dynamic global capital markets.

For many years, Samil PwC Capital Markets Group(“CMG”) provided services in relation to debt and equity security offerings on the Korean capital market. We provide a ‘one-stop’ service to our clients which is comprehensive and continuous from the initial stage to completion of their offering.

Our services include the following.

Pre-offering Support/Advice
Before offering, we support our clients with the following:

  • Analyze and advise on listing requirements of the Korea Stock Exchange
  • Formulate offering strategy
  • Financial audits/reviews - Advise on procedures and roles of various working parties involved in the offering (issuing company, accountant, underwriter, legal council)
  • Assist in GAAP conversion (voluntary adoption of IFRS is permitted for all companies from 2009)
  • Assist in financial reporting infrastructure improvements (with IFRS, consolidated financial statements becomes the main reporting framework)

During Offering
During offering, our services are as follows:

  • Participate and support various meetings (i.e. kick-off meeting, due diligence meeting, offering circular drafting sessions, etc.)
  • Support client for effective communication with working parties
  • Support client with review of offering documents
  • Issue requested letters (i.e. comfort letter, bring-down letter) with circle-up on financial information included in offering documents
  • Financial audits/reviews

On-going Support
We provide constant services even after the completion of the offering which are as follows:

  • Advise regulations required by Korean regulators to our clients and advise on the best alternatives
  • Financial audits/reviews
  • Review and advise on going disclosures and document filings
  • Offer financial reporting training services in order to comply with all the changes to IFRS, US GAAP or KGAAP


Korea Stock Exchange(KRX)
The KRX is the most liquid market in the Asia region and third only to US and UK in the world

  • There is a diverse industry market composition
  • The KRX operates with a memorandum of understanding with the Global Stock Exchange
  • In 1956 the Korean stock market opened with the launch of the Korea Stock Exchange
  • In January 2005, the Korea Exchange (KRX) was incorporated
  • There are 3 markets on KRX; KOSPI, KOSAQ and the derivatives market

KOSPI Market

  • KRX’s main board
  • As of 2009 year end, the exchange had 770 listed companies with total market capitalization of KRW 888 trillion and an annual trading value of nearly KRW 1,466 trillion
  • Foreign investors from more than 60 countries hold nearly 33% of total market Capitalization


  • Launched in 1996 as a financing channel for small and medium venture companies with growth potential
  • Listing requirements are simpler and listing fees are lower than those of KOSPI
  • 1,028 companies are listed on KOSDAQ with total market capitalization of KRW 86 trillion and an annual trading value of KRW 530 trillion in 2009

KRX uses two sets of listing requirements: one for the main Market (KOSPI) and one for the KOSDAQ Market. Companies can choose the Market that is more suitable for its size and nature of their business. Quantitative requirements are further summarized in the following. Qualitative requirements for both KOSPI and KOSDAQ are identical and relate to going concern, management transparency, and other broad range of factors required for investor protection.

Key qualitative requirements are also further summarized in the following:


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Listing in Korea

A Guide to Listing on the Korean Exchange