Debate Over Korea’s 'Technology Special' IPOs for Bio Startups
Creatrip Team
3 months ago
A 20-year-old Korean program allowing startups to list based on technology rather than earnings is under scrutiny as many bio ventures fail recent technology assessments. Once meant to help long‑gestation drug developers access capital, the 'technology special' listing (기술특례 상장) now faces stricter reviews focusing on technology transfer track records and revenues after past abuse. Approval rates have fallen and listed firms face a rule limiting cumulative tax‑losses (법차손) relative to equity, which can trigger sanctions if breached. Critics urge a return to technology‑centered evaluations, stronger Korean Exchange expertise, more rigorous broker/investor due diligence, and tougher penalties for bad actors to restore the program’s original purpose.
