The Securities Deliberation Committee Exempts 15 Companies from Sanctions for Delayed Business Report Submission Due to COVID-19

[Asia Economy Reporter Park Jihwan] The Securities and Futures Commission under the Financial Services Commission announced on the 24th that at its regular meeting, it decided to exempt administrative sanctions for 15 companies and 10 auditors who found it difficult to submit business reports and other documents on time due to the impact of COVID-19.

The companies include 12 listed companies and 3 unlisted companies. Among the listed companies, 8 are on KOSDAQ and 4 are on KONEX.

Earlier, on the 24th of last month, the Financial Services Commission decided to exempt administrative sanctions if business reports and other documents could not be submitted on time due to delays in settlement caused by COVID-19. Accordingly, the Financial Supervisory Service and the Korean Institute of Certified Public Accountants accepted exemption applications from companies and auditors from the 8th to the 12th of this month. During the application period, a total of 16 companies applied for exemption from sanctions due to delays in submitting financial statements, audit reports, business reports, etc., caused by the impact of COVID-19. The reasons for the applications were mainly due to delays in settlement as major business sites or subsidiaries were located in China, Hong Kong, and other regions.

The Securities and Futures Commission decided to exempt sanctions for 15 companies that met the exemption requirements among the applicants and for 10 auditors of those companies. One company was excluded from the exemption as its auditor's audit report had already been issued.

Among the companies granted exemption, 13 corporations subject to business report submission and their auditors must submit business reports and other documents by May 17, the deadline for the first quarter report submission.

There are 3 companies experiencing delays in submitting pre-audit financial statements. These companies must consult with their auditors to ensure the audit period necessary for a proper external audit and submit the financial statements before the extended deadline.

The Korea Exchange plans to disclose the results of the exemption application processing for listed companies to protect investors and minimize related uncertainties.

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