South Korea will introduce a cornerstone investor system for IPOs aimed at curbing sharp share-price declines after new listings. According to Sina Finance, the Financial Services Commission (FSC) said the government approved the system on Tuesday, allowing institutional investors that commit to lockups of at least six months to receive share allocations in advance. The rules will take effect on November 13, alongside amendments to the Capital Markets Act. The FSC said securing stable, long-term institutional buyers before IPO pricing should bolster investor confidence and ease the so-called “IPO price” problem, in which holders rush to sell after listing and cause share prices to plunge. South Korea’s volatile stock market has recently seen several large IPOs suffer: data center infrastructure company Elice Inc. fell 32% on its first trading day, becoming a bellwether for the global neocloud business. So far in 2026, shares of Korean IPO companies have fallen by a weighted average of 32%, while the Kospi has gained 38%.