IPOs & IPO Shares
How does mandatory holding (protective deposit) differ from an institution's lock-up commitment?
The mandatory holding (protective deposit) system at listing prohibits persons with management responsibility, such as the largest shareholder and specially related persons, from selling their shares for a certain period (usually 6 months) from the listing date; it is an obligation under the exchange's listing regulations.
It is intended to protect investors from sharp price swings caused by large-scale selling in the early period after listing, and the shares concerned are registered for mandatory holding with the Korea Securities Depository. An institutional investor's lock-up commitment differs in that it is a voluntary promise made in order to receive an IPO allocation.
This answer is general financial information as of 2026.10.14, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.