The headquarters of LG CNS, LG Group's IT service arm, in western Seoul / Courtesy of LG CNS

Multiple big-name companies that have garnered attention as candidates for this year's stock market debut are now drawing skepticism over whether they can succeed in the wake of LG CNS' disappointing debut.

The IT service arm of the country's fourth-largest conglomerate LG Group, LG CNS ended nearly 10 percent lower from its initial public offering (IPO) price of 61,900 won ($42.76) on its first trading day at the benchmark KOSPI, Wednesday.

The company gained 3.4 percent, Thursday, but then lost 0.87 percent, Friday, to finish at 57,200 won.

Such performance was still far from market observers' expectations that the share price of the company could double from the issue price.

LG CNS especially drew attention by raising 1.2 trillion won in the IPO in January and boasting a market valuation worth 5.4 trillion won.

It was Seoul's largest IPO since 2022, drawing strong demand against the backdrop of an IPO market slump since the second half of 2024.

Under the circumstances, market observers reckon other IPO candidates may also fail to arrest the recent trend of weak debuts for the Seoul market and traded in negative territory when they make their respective debut.

"It seems a lackluster stock market continues to affect investor sentiment when it comes to companies that go public," said Jung Eui-jung, head of the Korean Stockholders' Alliance, which advocates retail investors' rights.

Jung pointed out that Korea was one of the worst-performing markets among major economies in 2024.

For comparison, he noted Next Generation Technology Group — the first 2025 IPO debut in Japan — climbed 58 percent from its offer price on Wednesday after raising 1.3 billion yen ($8.49 million).

Of the IPO candidates in Korea, Lotte Global Logistics, won approval for KOSPI listing in December and is targeting a market capitalization of 1 trillion won.

Some financial experts, however, noted that the market capitalization of Lotte Group's logistics unit may fall below 1 trillion won.

Kbank, Seoul Guarantee Insurance and DN Solutions are also preparing to go public, possibly in the first half of the year.

However, internet-only lender Kbank has dropped IPO plans twice, in 2023 and 2024, after finding that demand forecast results were weaker than expected.

While the company deems its third IPO attempt will occur "once market conditions improve," some experts view economic uncertainties in Korea and abroad might cast a shadow over its plans.

The experts referred to political turmoil concerning President Yoon Suk Yeol's impeachment and U.S. President Donald Trump's hostile trade policy against America's major trading partners.