Korea Exchange (KRX), South Korea’s stock trading operator, expected about 20 new companies would join the Seoul’s main bourse Kospi next year, with a combined initial public offering (IPO) value estimated to reach 6 trillion won ($ 5 billion).

According to the KRX on Wednesday, Netmarble Games, Korea South-East Power, Korea East-West Power and ING Life Insurance are among the likely Kospi entrants next year. Last week, the nation`s stock market operator issued a preliminary approval for Netmarble`s plan to go public on the Kospi market. The two state-run power distributors also aim to complete their IPOs next year. The combined IPO value of all 20 firms is expected to reach 6 trillion won, according to KRX.

In addition, if Hotel Lotte resumes its halted IPO plan, the total IPO value next year would further increase to 10 trillion won. The listing of Hotel Lotte has drawn keen attention from market experts as it would surpass the record amount of 4.9 trillion sale by Samsung Life Insurance Co. in 2010.

The IPO market has continued to expand this year despite a slowdown in the economy, with the total IPO value jumping to 4.27 trillion won from 2.4 trillion won in 2015. The Kospi has invited total 16 firms so far this year, the same as the last year, but Samsung BioLogics whose IPO value reached 2.25 trillion won has helped boost the total IPO value.

Dongsuh Companies Inc. and Korea Real Estate Investment & Trust Co., which were blue-chip companies listed on the country’s secondary Kosdaq market, were also relisted on the main bourse Kospi this year. It was the first time for Kosdaq-listed firms to be transferred to the Kospi since 2011 when travel agency Hanatour Service Inc. was relocated to the country’s benchmark index.

But it remains uncertain whether the next year’s IPO market would boom again due to soured investment sentiment amid political unrest in Korea with presidency in limbo over the unprecedented power abuse scandal that has led the Korean National Assembly to impeach President Park Geun-hye. This year’s much-hyped IPO Samsung BioLogics and Doosan Bobcat all drew less-than-expected retail response.

By Moon Il-ho and Chung Woo-sung

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