Against the backdrop of persistent Korean stock market stagnation and broader economic challenges, a growing contingent of Korean corporations is actively pursuing U.S. capital market access. While U.S. markets present growth opportunities, companies must navigate regulatory frameworks and adhere to demanding financial reporting standards to execute a successful public offering. Companies must acknowledge that pursuing a U.S. listing requires extensive advance preparation.
Converting financial reporting frameworks to U.S. Generally Accepted Accounting Principles (US GAAP) or International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) can be a big challenge for companies, while preparation for audits under Public Company Accounting Oversight Board (PCAOB) standards requires extensive advance planning. During the listing preparation process, companies should carefully assess their qualification for regulatory accommodations available to Foreign Private Issuers or Emerging Growth Companies, and evaluate potential tax issues associated with corporate domicile changes such as U.S. flips (corporate redomiciliation to the United States).
Moreover, engaging seasoned advisors with multifaceted expertise is crucial for successfully executing a U.S. market debut. Through comprehensive preparation guided by a consortium of specialists, companies can successfully complete the complex journey to a U.S. public offering.
