FSC Chief Says Solidigm Listing Would Fall Under Dual-Listing Rules, Trigger Parent Duties

Kim Byoung-hwan, chairman of South Korea’s Financial Services Commission, said SK Hynix’s push to list its US subsidiary Solidigm would fall under the country’s dual-listing rules.

Testifying at the National Assembly Political Affairs Committee’s comprehensive audit on Oct. 22, Kim said Solidigm’s proposed listing is subject to the dual-listing guidelines. He added that SK Square and SK Hynix, as parent companies, must fulfill five obligations based on their duty to protect shareholder interests.

Under current rules, a parent company pursuing a dual listing must complete five steps: assess the impact on shareholders, prepare measures to protect them, communicate with shareholders, obtain a board resolution for or against 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 exchange with Democratic Party lawmaker Lee Kang-il, he said the dual-listing guidelines apply to both overseas and domestic listings.

He did not give a definitive answer on whether a securities registration statement would need to be filed in South Korea. There has been no official announcement or specific details on a listing plan yet, he said.

Solidigm originated from SK Hynix’s 2021 acquisition of Intel’s NAND flash and solid-state drive businesses. In the ownership structure, AI Company sits above Solidigm, followed by SK Hynix, SK Square and SK Inc.