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| 금융위원회 (사진=연합뉴스) |
[Alpha Biz=(Chicago) Reporter Kim Jisun] The financial authorities have completed revising related regulations to introduce English disclosures, which are being pursued as one of the measures to resolve the Korea Discount.
As a result, large KOSPI-listed companies will be required to submit the same information in English within three days of submitting a Korean disclosure to the Korea Exchange starting in 2024. The authorities also plan to establish a regulation to disclose the list of companies that do not submit English disclosures.
The Financial Services Commission announced on the 2nd that it has completed the revision of the Korea Exchange's securities market disclosure regulations and transfer rules for the English disclosure system to take effect in 2024.
The revised exchange regulations included the introduction of the first phase of the English disclosure. From 2024, KOSPI-listed companies with assets of 10 trillion won or more (excluding a 5% foreign stake) or KOSPI-listed companies with a foreign stake of 30% or more (asset of more than 2 trillion won and less than 10 trillion won) will be required to submit an English public disclosure within three days of submitting the Korean public disclosure.
Last year, 2,453 KOSPI-listed companies submitted English disclosures, accounting for only 13.8% of the total number of Korean disclosures. Most companies rely on automatic English translations, and only a few companies voluntarily submit English disclosures.
In order to expand accessibility to foreign investors, the Financial Services Commission will implement the first stage from next year to 2025 before making the second stage mandatory from 2026.
The second stage is to expand the introduction of English disclosures to KOSPI-listed companies with assets of more than KRW 2 trillion and expand the scope of additional English submissions along with the disclosure of the settlement of accounts and key decisions that were required to be submitted in English in the first stage.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
