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.