"Due to Corona"... 37 Listed Companies Apply for Business Report Delay Penalty Exemption

[Asia Economy Reporter Koh Hyung-kwang] Due to the impact of the novel coronavirus infection (COVID-19), a total of 63 companies, including 37 listed companies, have applied to the financial authorities for exemption from administrative sanctions, stating that they are unable to submit financial statements, audit reports, and business reports within the deadline.

The Financial Services Commission recently announced on the 18th that a total of 63 companies, including 37 listed companies (7 KOSPI companies, 25 KOSDAQ companies, and 5 KONEX companies) and 26 unlisted companies, have applied for sanction exemptions.

The most common reason for the application was that major business sites or subsidiaries are located in China, accounting for 45 companies. Six companies were also located in domestic special infectious disease management areas.

Additionally, eight companies applied for sanction exemptions due to delays in settlement and audits of local subsidiaries located in the U.S., Europe, Southeast Asia, and other regions. The Financial Services Commission plans to decide on the sanction exemptions at the Securities and Futures Commission meeting on the 25th.

There are six companies currently undergoing delisting review procedures due to adverse audit opinions in 2018. The authorities will review whether these companies fall under cases where it is unavoidable to fail to submit business reports within the deadline due to the impact of COVID-19, and whether they are abusing this special case to delay the delisting review process.

Among the companies exempted from sanctions, those subject to business report submission must submit business reports by May 15, the deadline for the first quarter quarterly report this year. Companies that do not submit business reports must submit audit reports by June 15, which is 45 days extended from the original audit report submission deadline of April 29.

A Financial Services Commission official explained, "For companies that do not apply within this application period and fail to submit or delay submission of business reports, individual reviews will be conducted later to determine the level of sanctions."

This content was produced with the assistance of AI translation services.