South Korea says Solidigm's potential listing could violate dual-listing rules

SEOUL, Oct 19 (Reuters) - South Korea's financial regulator said on Monday that SK Hynix's 000660.KS potential listing of US unit Solidigm could violate restrictions on dual listing.

Financial Supervisory Service Governor Lee Chan-jin said at a parliamentary hearing that South Korean regulators were looking into whether Solidigm's potential initial public offering in the United States would require a review under domestic rules.

"We keep monitoring the issue ... both the Financial Services Commission and ourselves judged that it is a violation of [rules on] dual listing," Lee told a lawmaker when asked how regulators would protect the interests of minority shareholders in parent SK Hynix if Solidigm went public.

"The FSC has been waiting for an official interpretation of the rules on whether the issue is subject to filing for domestic securities registration," he added, referring to the top financial regulator.

Reuters reported in September that Solidigm is considering an initial public ‌offering as early as next year that could value the US subsidiary at up to $150 billion.

South Korean regulators unveiled in July tighter rules to restrict dual listing, aiming to protect minority shareholders. Boards must obtain consent from miniority shareholders before listing a unit in South Korea or overseas.

SK Hynix said earlier this month it would evaluate measures to protect its shareholders in response to market concerns about a potential listing of Solidigm.

SK Hynix was not immediately available to comment.