Naver Webtoon’s U.S. Nasdaq debut in June, under its parent company Webtoon Entertainment, is stirring speculation that more South Korean unicorns might soon pursue overseas listings. Despite generating a large share of revenue domestically, both Naver Webtoon and Coupang, which previously went public in the U.S., chose to list stateside to potentially secure higher valuations on American exchanges.
However, the industry is expressing caution. Many South Korean companies that previously pursued overseas IPOs have struggled with poor stock performance, and a significant number have even been delisted. “The U.S. stock market is much larger than Korea’s, so it’s understandable that companies expect better valuations there,” said an industry insider. “Still, given the underperformance of most Korean stocks abroad, it’s a bit unsettling to hear companies uniformly cite ‘getting their true value’ as the reason for heading to the U.S.”
On Nov. 1, sources from the investment banking sector reported that fintech company VIVA REPUBLICA, which operates the mobile fintech app Toss, recently shifted its IPO plans from a domestic listing to a U.S. one. This move comes just three months after Korea Exchange (KRX) Chairman Jeong Eun-bo held a meeting in July with top domestic unicorn CEOs, including VIVA REPUBLICA’s Lee Seung-geon, offering robust support for local listings. VIVA REPUBLICA’s valuation is estimated between 10 trillion won ($7.25 billion) and 20 trillion won ($14.5 billion).
For companies, the primary goal of going public is to raise capital, prompting them to list in markets offering the highest valuation potential. South Korea’s listing requirements, which emphasize financial stability, are relatively strict compared to the U.S. market, where the focus is more on growth potential and where conditions are more flexible. For unicorns and startups, this means that even amid current losses, an overseas IPO may present a more favorable option by allowing them to lean on future growth projections.
Still, with many U.S.-listed South Korean firms posting disappointing results, there are concerns in capital markets about a potential undervaluation of South Korean companies overall. In the 2000s, companies like thrunet, Mirae Industries, hanaro telecom, Emachine, WEBZEN, and Pixelplus listed in the U.S., only to later be delisted. Even recent listings, including Coupang and Naver Webtoon, are trading below their IPO prices.
