The government’s new guidelines, which effectively bar the separate listing of subsidiaries spun off from listed parent companies that can erode shareholder value, have cast uncertainty over the initial public offering (IPO) plans of several high-profile Korean firms, according to industry experts, Tuesday. Among those forced to rethink their listing strategies are HD Hyundai Robotics, CJ Olive Young, Lotte Biologics and SK ecoplant, all of which have been regarded as strong IPO candidates. At the heart of the new regulations, unveiled Monday by the Financial Services Commission and the Korea Exchange, is a requirement that listed companies secure shareholder approval before separately listing subsidiaries created by spinning off part of their business while retaining control. The change puts minority shareholder protection at the center of the process. Boards will also be expected to present concrete measures to preserve shareholder value, such as raising cash dividends, canceling treasury shares or strengthening the parent company’s earnings power through new investments. HD Hyunda