Financial Services Commission Grants Exemptions for Late Submission Penalties to 63 Companies' Business Reports

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission announced on the 25th that it has decided to exempt 63 companies and 36 auditors from administrative sanctions related to delayed submissions due to difficulties in submitting business reports on time caused by the novel coronavirus infection (COVID-19).

The Financial Services Commission decided on the 26th of last month to exempt administrative sanctions if business reports could not be submitted on time due to the impact of COVID-19. Applications for exemption from administrative sanctions were accepted from the 28th of last month until the 18th, with a total of 66 companies applying for exemption.

The companies exempted from sanctions include 35 listed companies and 28 unlisted companies. The targets for exemption applications were 10 companies delaying submission of pre-audit financial statements and business reports, 17 companies delaying only pre-audit financial statements, 35 companies delaying only business reports, and 1 company delaying pre-audit financial statements and small public offering settlement documents.

A Financial Services Commission official stated, "We minimized the burden on companies by exempting sanctions when it was recognized that delays in settlement and audit occurred due to COVID-19, not only for major business sites and subsidiaries located in China or domestic special infectious disease control areas but also for those located in the US, Europe, Southeast Asia, or other domestic regions."

On the same day, the Securities and Futures Commission resolved that three companies that did not meet the exemption requirements are not eligible for exemption. These companies may face administrative sanctions through future Securities and Futures Commission resolutions if they fail to submit their business reports by the end of this month.

Among the companies granted administrative sanction exemptions, corporations required to submit business reports (45 companies) must submit their first quarter 2020 reports by the deadline of May 15, and corporations not submitting business reports (17 companies) must submit audit reports by June 15.

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