FSS and Prosecutors Raid SK Hynix... Investigation of Pado as Witness

Suspicions of 'Ppeongtwigi Listing' Spark Controversy
Reference Investigation Aimed at "Securing Objective Evidence"

SK Hynix Icheon Campus. Photo by SK Hynix

The Financial Supervisory Service and the prosecution conducted a search and seizure at SK Hynix, a major client of Fabless (semiconductor design specialist) company Pado, which is under suspicion of 'inflated listing.'

According to financial authorities on the 30th, the Capital Market Special Judicial Police (Special Police) of the Financial Supervisory Service and the Southern District Prosecutors' Office carried out the search and seizure at SK Hynix headquarters and other locations on the same day.

This search was conducted as part of a witness investigation, considering that SK Hynix is a major client of Pado. The company has been confirmed to have no connection to the allegations related to Pado.

A Special Police official explained, "It is to secure objective evidence." The official declined to comment on plans for witness investigations regarding other major clients besides SK Hynix, saying, "We cannot answer."

Earlier, the Special Police had conducted search and seizure operations at Pado and NH Investment & Securities and Korea Investment & Securities, which underwrote Pado's listing. Forest Partners, an early institutional investor, is also under investigation after a three-day search and seizure.

Pado entered the KOSDAQ market last August through the technology special listing system. At that time, it was recognized for its technological capabilities and attracted attention as a 'unicorn' (a startup valued at over 1 trillion won) in the semiconductor field. However, its stock price plummeted sharply after disclosing results below expectations. While Pado's securities registration statement estimated annual sales of 120.2 billion won last year, its sales for the second quarter, when the IPO was actively underway, amounted to only 59 million won.