Yeouido financial district in Seoul, Nov. 17 / Yonhap

Key players, worth trillions of won in corporate value — including subsidiaries of major conglomerates — are aiming to go public in 2025. However, according to market watchers on Thursday, it remains uncertain whether they can revive the current slump in market sentiment.

LG CNS is among the most anticipated initial public offerings (IPO) of 2025. The information technology subsidiary of LG will commence its IPO process next month, starting with demand forecasting for institutional investors. The offering is projected to raise up to 1.19 trillion won ($812 million), making it the largest public offering in three years since LG Energy Solutions.

Lotte Global Logistics, a logistics subsidiary of Lotte, plans to proceed with its stock market debut upon receiving the Korea Exchange's review results later this month. The company is targeting a market capitalization of 1 trillion won.

Other companies cautiously timing their IPOs, including Kbank, Seoul Guarantee Insurance (SGI) and DN Solutions, are also preparing for public offerings during the first half of 2025.

The subdued end-of-year IPO market has bolstered the interest of companies in pursuing IPOs next year.

In the first quarter of this year, newly listed stocks posted an average first-day return of 119.93 percent. This figure dropped to 65 percent in the second quarter and further declined to 22.99 percent in the third quarter. By November, the trend has reversed entirely, with newly listed stocks recording a 9.58 percent loss.

"The overheated IPO market has lost its momentum and entered a cold spell (in 2024)," an industry official said. "Several companies that are financially and operationally strong prepared for listings in the second half (of this year), but many have postponed their public offerings due to weakened investor confidence."

In October, Kbank, an internet-only bank, delayed its IPO process for the second time, citing weaker-than-expected investor interest. DN Solutions and SGI, despite receiving preliminary approval from the Korea Exchange, have postponed submitting their securities registration statements, citing unfavorable domestic stock market conditions.

Whether IPO market sentiment will improve in 2025 remains uncertain. Recent political developments, including the botched imposition of martial law and the subsequent impeachment of the president, have further eroded investor confidence.

Market watchers believe LG CNS' listing next month will set the tone for the IPO market in the first half of 2025.

"Rising market volatility is causing retail investors to lose interest in the IPO market," Eugene Investment & Securities analyst Park Jong-sun said. "The trend of distinguishing between strong and weak stocks has intensified."