Musinsa, the fashion platform regarded as the most anticipated IPO candidate of the year, has officially kicked off its listing process, making waves across the capital market. As news spread that Musinsa had begun selecting its IPO underwriter, major domestic securities firms entered a fierce behind-the-scenes competition to win the mandate, pushing industry interest to new heights.

Park Junmo, CEO of Musinsa, formally set the stage for the IPO, stating at a recent partners' event, “The IPO is a key solution for securing financial resources necessary for global expansion. We will soon review whether we can raise the desired capital through the underwriter selection process.” His remarks have heightened market expectations.

Backed by new funds, Musinsa plans to accelerate its push into overseas markets. It aims to open offline stores starting in Shanghai in the second half of this year, with launches in Japan next year and in North America and Southeast Asia by 2030, expanding its territorial reach. Its affiliate, Musinsa Logistics, will play a core role in the company’s global one-stop logistics strategy.

On the over-the-counter market, Musinsa is currently valued at around 3 trillion won, but its IPO valuation could hit as high as 5 trillion won—significantly surpassing the 3.5 trillion won value recognized during its 2023 investment round led by global private equity player KKR. Some analysts even predict Musinsa could reach a 10 trillion won valuation if benchmarked against the EV/Sales multiples of Japan’s leading fashion platform, Zozotown.

Musinsa appears to have laid careful groundwork for a successful listing. Last year, it applied to the Financial Supervisory Service for designated auditor status, designating Deloitte Anjin as its external auditor this January—a key milestone in its IPO journey.

Recently, Musinsa also allowed “general investors” to trade its shares, previously restricted to “professional investors,” signaling increased confidence in its public debut. This move is seen as demonstrating the company’s liquidity and ability to meet strict regulatory requirements, such as business report submissions, reassuring the market about investment risks. The appointment of outside directors to its board has also strengthened corporate governance transparency in line with global standards.

Not all signs point to smooth sailing for Musinsa, however. Major challenges remain, especially in securing investor trust. Chief among these is the underperformance of its subsidiaries. While Musinsa posted a record standalone revenue of 1 trillion won and an operating profit of 112.3 billion won last year, consolidated operating profit (including its 16 affiliates) declined to 102.8 billion won, dragged down by subsidiary losses.

To address these profitability issues, the company has undertaken internal restructuring, including the absorption and merger of its limited-edition resale platform SLDT.  

Another key risk is ongoing scrutiny by Korea’s Fair Trade Commission over allegations of excessive commission rates and restrictions on rival platforms—a major stumbling block for IPO success. Additional concerns include controversies over its hiring process, misleading product listings of tenant brands, and so-called ‘greenwashing’ (environmental claims exaggeration), all of which could pose significant drawbacks during the listing review process.

An industry insider noted, “It’s only natural that Musinsa, recording its highest-ever performance last year and preparing systematically for an IPO, is attracting strong investor interest,” but added, “How it tackles unresolved issues, such as improving subsidiary profitability and addressing regulatory investigations, will be critical in confirming its 5 trillion won valuation in the market and ensuring a successful debut.”

Photo = Yonhap News, Musinsa

Note “This article was translated from the original Korean version using AI assistance, and subsequently edited by a native-speaking journalist.”

Photo=Yonhap News, Musinsa