How is pre-IPO investment usually made?

Pre-IPO investment broadly takes three forms: subscribing, through a third-party allotment, for new shares issued by a company preparing to list; buying existing shares held by current shareholders such as the largest shareholder; and investing in equity-linked securities such as convertible bonds or redeemable convertible preferred shares.

The Korea Exchange's listing rules set whether, and for how long, mandatory holding applies after listing depending on how the shares were acquired, and the 'shares, etc.' subject to mandatory holding include not only share certificates but also bonds such as CBs, BWs and EBs. Because the timing of a possible exit can differ depending on how you invested, you should check the investment structure first.