Is it true that institutions making lock-up commitments get IPO shares first?

Yes. Following a 2025 amendment to Korea Financial Investment Association regulations, the lead managing underwriter must first allocate (pre-allocate) at least a certain proportion of the shares expected to go to institutional investors to institutions that have made lock-up commitments.

The proportion under the regulations is 40%, and 30% applied to offerings whose securities registration statement was first filed by the end of 2025. In addition, if allocations to committed institutions fall short of the standard, the lead managing underwriter is now required to acquire 1% of the offered shares (up to KRW 3 billion) itself and hold them for at least 6 months.