[South Korea will introduce a cornerstone investor locking mechanism to curb the sell-off after IPO listings] On November 5, South Korea’s top financial regulatory agency will introduce an initial public offering (IPO) cornerstone investor system to curb the sharp decline in stock prices after the listing of new stocks. South Korea's Financial Services Commission (FSC) said that under the new system, which was approved by the government on Tuesday, institutional investors who commit to locking up their shares for at least six months will be allowed to receive early access to share allotments. The relevant rules will come into effect on November 13 and will be implemented simultaneously with the amendments to the Capital Market Law. "Introducing stable institutional buyers with long investment horizons before transaction pricing can help enhance investor confidence in IPOs and alleviate the so-called 'IPO pricing' problem, in which holders rush to sell after a stock is listed, leading to a sharp drop in stock prices," the Financial Commission of Korea said in a statement on Tuesday.