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South Korean stocks extend gains after country moves to ban double listingsSouth Korean stocks surged as Financial Services Commission Chairman Lee Eog-weon announced a ban on double listings. The Kospi jumped 5%, with CJ Corp. and SK Inc. shares rising.By CNBCTV18.com March 18, 2026, 12:03:21 PM IST (Published)2 Min ReadSouth Korean equities surged after the government moved to prohibit publicly traded corporations from listing specific subsidiaries—a practice long accused of eroding shareholder value.

Following the announcement of fresh steps by Financial Services Commission Chairman Lee Eog-weon at an investor meeting in Seoul on Wednesday, the benchmark Kospi jumped as much as 5%, extending gains for a third session.

In an effort to reduce volatility, programme trading was also halted following a more than 5% increase in Kospi 200 futures.

"Double listings" are generally seen as a structural reason for Korea's ongoing equity undervaluation, sometimes known as the "Korea discount," and they tend to lower holding company shares. The government hopes to increase market value and close the gap with international competitors by outlawing them.

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Affiliate IPOs have been a major source of funding for many chaebols. However, fewer robust business units are likely to split off into independent companies as a result of new regulations limiting affiliate listings.

Earlier this week, local news about the idea caused shares of holding firms, such as CJ Corp. and SK Inc., to rise. IPO plans for affiliates at significant chaebols like SK, HD Hyundai, and Hanwha Group may be impacted by the legislation. CJ's stock increased by 8.8% on Wednesday, while SK's increased by 3.8%.

The 2022 IPO of LG Energy Solution is frequently used as an example. At the height of the electric vehicle boom, LG Chem broke out the rapidly expanding battery division. The parent company's shares then dropped roughly 9% in the next month before going into a protracted

Continue Reading(Edited by : Juviraj Anchil)TagsKOSPISouth Korea