Korean Tech Startups Ditch Special Listing Tracks for Full IPO Scrutiny

Zenon, an enterprise generative AI startup, has set an offer price of 9,700 to 12,200 won per share for a general KOSDAQ listing that could raise up to 26.84 billion won. The company filed its securities registration statement with the Financial Services Commission on the 8th of last month and kicked off institutional demand forecasting on the 26th, running through the 30th, according to the venture and startup industry. Samsung Securities is the lead underwriter, and general retail subscription is set for the 4th and 5th of next month.

Zenon's numbers explain the confidence behind a general listing rather than the technology or growth exemption track. First-half standalone revenue hit 11.76 billion won this year, a 4.3-fold jump from 2.73 billion won in the same period of last year. That already exceeds its full-year 2024 revenue of 8.63 billion won and its 11.74 billion won from last year. First-half operating profit came in at 2.2 billion won, 3.1 times last year's annual figure, on an 18.7% margin. The company, founded in 2017, has posted annual operating profits for two consecutive years, starting with 1.02 billion won in 2024.

Its self-developed enterprise AX platform, "Genos," covers AI strategy, model development, adoption and operation. Zenon built its early customer base in financial, public and power generation sectors and is now pushing into manufacturing and pharmaceuticals. CEO Go Seok-tae said: "We have supported companies' practical AX based on our proprietary platform and project experience accumulated in various industrial fields." He added: "We will accelerate the commercialization of AI agents and physical AI, as well as entry into overseas markets, through this offering."

Which company is betting on India for its KOSDAQ debut?

Affinit, an AI financial company, has been under preliminary KOSDAQ review at the Korea Exchange since August, with Mirae Asset Securities as lead underwriter and Hana Securities as co-underwriter. Though headquartered in Korea, most of its business runs through an RBI-licensed non-bank financial company subsidiary in India operating the mobile platform "TrueBalance."

Its edge is a self-developed Alternative Credit Scoring system that analyzes more than 90,000 types of non-financial data from smartphones to score "thin filers" lacking financial transaction history, then connects them to loans, insurance and credit cards. Last year's K-IFRS revenue was 169.1 billion won with 44.9 billion won in operating profit and a 23.5% pre-tax margin on 39.7 billion won of pre-tax profit. First-half revenue rose 45.8% to 112.3 billion won, operating profit climbed 79.4% to 29.6 billion won — its best-ever half-year result. Affinit has been operating-profitable since 2022 and could become the first Korean company earning most of its revenue in India to list on the KOSDAQ.

How did Everspin recover from a failed 2021 attempt?

AI cybersecurity firm Everspin filed for a preliminary KOSDAQ review on the 23rd. It first tried listing via the growth exemption track in 2021 but voluntarily withdrew; revenue was then only around 600 million won and the company was loss-making. Last year consolidated revenue reached 13.46 billion won, up 56.5%, with operating profit up roughly nine-fold to 4.869 billion won and net income up about six-fold to 7.337 billion won, on a 36.3% operating margin. If the review stays on schedule, Everspin could reach the market between year-end and early next year.

Its products are the anti-hacking solution "EverSafe," built on Moving Target Defense technology that rotates security modules at set intervals, and "FakeFinder," a whitelist-based malicious app and phishing detector. Subscription licenses generate recurring revenue, and the company says limited cost growth as its customer base expands produces operating leverage, with profits outpacing revenue.

Where will Rebellions list?

AI chipmaker Rebellions has slowed its timeline. It originally planned a June preliminary review filing and a public offering within the year, but selection as a National Growth Fund investment target pushed the schedule back. Industry sources say it's consulting the Korea Exchange on both timing and market choice, with a preliminary review application expected within the fourth quarter. KOSDAQ has recently emerged as an option after the company initially prioritized a general KOSPI listing.

Its financials complicate the call. Last year's consolidated revenue rose sharply to 32.02 billion won, but operating loss widened 38% to 120.46 billion won. CEO Park Seong-hyun said last July he wanted a "KOSPI listing in the first half of next year," and the company's global financial investors are reportedly demanding KOSPI. Some observers suggest Rebellions could skip the external pre-technical evaluation by using the KOSDAQ technology exemption, available to companies with expected market capitalization of 1 trillion won or more. The company said: "The listing market, timing of the preliminary review application, and specific listing method have not been finalized."

A venture investment industry official said the trend shows IPO evaluation criteria "expanding from technology to performance," and it will be interesting to see whether "companies that make money with technology" become a new listing standard beyond simply "companies with good technology."