[StartupRecipe] South Korea’s IPO Market Surges on AI and K-Beauty Momentum

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South Korea’s IPO Market Surges on AI and K-Beauty Momentum

South Korea’s IPO market in 2025 is experiencing a favorable shift in the second half after a sluggish first half, driven by a bullish stock market and successful listings of AI and K-beauty companies. Companies that had postponed their listings are now returning to the market. However, concerns about overheating are emerging as a pattern of sharp post-listing declines following initial surges continues to repeat.

In the first half, several companies successfully went public, starting with Meatbox Global, a B2B livestock trading platform, followed by Day1Company, an adult education content provider, NowRobotics, a robot control specialist, and Neurofit, a brain disease medical AI company. In May, premium vegan beauty brand Dalba Global surged 66% above its IPO price on its first trading day, demonstrating strong performance befitting a major beauty player. AI companies emerged as the game-changers in the second-half IPO market.

Starting with S2W, an AI-based dark web security solution provider, Nota, which possesses AI model optimization technology, soared over 240% above its offering price on its debut. The stock drew significant attention by rising 300% within two days and surpassing 500% within five trading days, breaking through a market capitalization of 1 trillion won. Beauty companies also garnered attention in the second-half IPO market. Dalba Global, dubbed the second APR, went public, while Aromatica, which listed last week, set a 2025 record with a retail subscription competition ratio of 2,865:1 and closed up 140% on its first trading day.

As the KOSPI broke through the 4,000 mark in the second half, maintaining an upward trajectory, it had a positive impact on the IPO market. Improved investor sentiment heightened interest in IPO subscriptions, and post-listing stock performance showed better trends compared to the first half. However, the outlook isn’t entirely bright. The Pinkfong Company, considered a second-half heavyweight in the entertainment tech sector, fell 40% within five days of listing. Concerns about increased post-listing volatility have been raised as the institutional lock-up commitment ratio stood at only 30.42%.

Nota is also experiencing corrections amid increased volatility following its sharp rise. Nearly all listed companies are facing adjustment phases. Despite this situation, major companies preparing to enter the market next year continue to line up. Companies including Nara Space Technology, MakinaRocks, Ditonic, and Codeit, as well as bio and healthcare firms such as aimedbio, Quad Medicine, and Livs Med, are consecutively preparing for listings. Musinsa has entered the final stages of selecting underwriters, and Goodai Global, a key player in the K-beauty boom, has announced it will accelerate its IPO.

Additionally, Upstage, along with AI chip unicorns Rebellions and FuriosaAI, are actively considering going public. This year’s successful AI and beauty company listings have brought positive momentum to the IPO market. However, volatility and overheating concerns remain challenges that need to be addressed, as cases of corrections following debut-day surges continue to repeat due to the prevalence of short-term profit-taking investments.

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