This article was published on May 8, 2025, at 4:46 p.m. on the ChosunBiz MoneyMove website.
Recently, as more domestic corporations are pushing for or considering listings on the U.S. Nasdaq market, major accounting firms are also strengthening their auditing and consulting services for overseas initial public offerings (IPOs).
According to the accounting industry on the 8th, the domestic 'Big 4' accounting firms, including Samil, Samjung, Anjin, and Hanyoung, expect an increase in cases of U.S. IPOs and are consecutively expanding dedicated organizations to assist domestic corporations with their listings. Samjung KPMG, which operates a 'U.S. IPO Task Force' tailored for the U.S. securities market, has increased its partner staff from 5-6 at the beginning to over 20 recently. Partners are executives who hold equity in their respective accounting firms and participate in major decision-making. This means they are actively empowering the team. Samjung has undertaken the U.S. listing processes for Coupang, Webtoon Entertainment (the parent company of Naver Webtoon), and others.
Deloitte Anjin expanded its consulting services into a 'global IPO dedicated team' at the end of last month to actively respond to the increasing demand for overseas listings, including U.S. listings for domestic corporations. The firm stated that it concentrated on enhancing its consulting capabilities for corporations aiming to enter the global market. It created a team led by partner Ha Sung-ho, consisting of seven partners who specialize in accounting, tax, and financial consulting.
Samil PwC was the first to establish a U.S. listing support center to provide systematic auditing services for corporations listed on the U.S. stock market. Additionally, it restructured its existing overseas listing service team last July and established a dedicated overseas IPO team. This team consists of over 90 experts, including seven partners. EY Hanyoung also operates a 'global IPO team' that offers auditing and consulting services for companies preparing to list overseas. It is led by Park Jeong-ik, the head of the audit department's market division, and comprises over 150 members, including 20 partners.
The background for these accounting firms creating organizations to assist with U.S. and overseas IPOs can be found in reports published regularly. According to a report released by EY Hanyoung on the 22nd of last month, the number of IPOs in the Americas rose 51% year-on-year to 62 in the first quarter of this year, with a total fundraising amount reaching $8.9 billion. Among the companies listed in the U.S., 58% were from countries other than the U.S. During the same period, there were 23 IPOs in Korea, with a fundraising amount of $1.265 billion, thanks to the 'big fish' LG CNS.
Kang Sang-hyun, the leader of the U.S. IPO consulting team at Samjung KPMG, noted, 'The U.S. capital market is not only open to foreign corporations but is also advantageous in terms of additional fundraising and enhancing corporate value after listing,' and added, 'Given the characteristics of the U.S. IPO market, which values future growth, an environment suitable for technology-based growth corporations has been created.'
According to a report released by Samjung last month, the price-to-book ratio (PBR) of the S&P 500 is 4.8 times, which is higher than that of Korea (0.92 times) or Japan (1.41 times). The percentage of corporations with a PBR of over 2 times is 77% in the U.S., compared to 30% in Korea and 23% in Japan. Given this situation, approximately half of the 56 domestic corporations listed on overseas exchanges are listed in the U.S.
There are three main methods for listing in the U.S.: indirect listing using American Depositary Receipts (ADRs), initial public offerings (IPOs), and SPAC (Special Purpose Acquisition Company) listings through mergers. Among the 25 companies listed on the U.S. stock market, 15 used the ADR method, 8 went public through IPOs, and 2 listed through SPAC mergers. Notably, POSCO, Korea Electric Power Corporation, and SK Telecom used the ADR method, while Coupang and Webtoon Entertainment opted for IPOs.
However, among the 25 domestic corporations listed in the U.S. by last year, only 15 (60%) have maintained their listings. This is due to the stringent regulatory requirements and listing maintenance criteria of the U.S. capital market. An accounting industry official stated, 'As the listing threshold for domestic companies has risen, there has been an increase in corporations seeking accounting firms to meet the complex U.S. listing standards, including changes in accounting standards and financial statement audits.'