[South Korea to Introduce Cornerstone Investor Lock-up Mechanism to Curb Post-IPO Sell-Off] Odaily Planet Daily reports that South Korea's top financial regulator will introduce a cornerstone investor system for initial public offerings (IPOs) to curb sharp declines in share prices after new listings. The Financial Services Commission (FSC) stated 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 shares in advance. The relevant rules will take effect on November 13th, simultaneously with the amendment to the Capital Markets Act. The FSC stated in a statement on Tuesday: "Introducing stable institutional buyers with longer investment horizons before the transaction is priced will help enhance investor confidence in IPOs and alleviate the so-called 'IPO pricing' problem, i.e., the sharp drop in share prices caused by a rush to sell after the stock is listed." (Jinshi)