IPOs & IPO Shares
How does mandatory holding (protective deposit) differ from an institution's lock-up commitment?
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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 14/10/2026, not investment advice. Rules and tax rates change, so please also check the latest guidance from the source institution.