South Korea's IPO market shrank sharply in the first half of 2026, with Korea Exchange data released on the 12th showing 17 new KOSPI and KOSDAQ listings excluding SPACs, down from 38 a year earlier, and proceeds falling to 1.1 trillion won ($778.8 million) from 2.2 trillion won ($1.6 billion). Analysts attributed the slowdown to money crowding into mega-cap stocks such as Samsung Electronics and SK Hynix as the KOSPI surged past 9,000, while repeated delays to dual-listing guidelines disrupted schedules, leading Essex Solutions to withdraw its preliminary review and pushing back reviews for DTS and Duksan Neopcore. Retail appetite remained strong, with 82% of first-half deals recording subscription ratios above 1,000-to-1 versus 42% a year earlier, but institutional book-building (institutional demand testing) has become more selective: the share of first-half deals above 1,000-to-1 stayed at 59%, yet all six August listings posted ratios below that threshold as equity volatility hurt sentiment. Supply is now recovering, with four listings in July, six more due in August, and 14 companies in book-building between July and September, but analysts say July's finalized dual-listing guidelines may not be enough on their own to revive the market if global volatility and mega-cap concentration keep fair valuations difficult, reinforcing a "flight to quality" focused on fundamentals and growth prospects.