Shares of SK Square and affiliates SK hynix and SK Inc. fell after South Korea’s top financial regulator warned that a potential U.S. listing of SK hynix subsidiary Solidigm would violate dual-listing rules.
On October 19, Financial Supervisory Service (FSS) Governor Lee Chan-jin said during a parliamentary hearing that the move would breach regulations intended to protect minority shareholders from value dilution.
The warning has created uncertainty around Solidigm’s planned initial public offering. Solidigm was formed after SK hynix acquired Intel’s NAND business.
The FSS is determining whether Solidigm, as an overseas subsidiary, must meet domestic securities filing requirements. The news triggered a sell-off in related stocks, with SK hynix shares falling as much as 6% on October 20.