Financial Supervisory Service Improves Regular Report Disclosure Formats to Enhance Investor Convenience

[Asia Economy Reporter Park Jihwan] Financial authorities are promoting improvements to corporate disclosure formats so that investors can use regular reports such as business reports and quarterly/semi-annual reports more easily and conveniently.

On the 12th, the Financial Supervisory Service (FSS) announced that it decided to improve disclosure formats to enable investors to use regular reports more easily and conveniently.

First, the FSS plans to integrate and arrange similar disclosure items scattered throughout the regular reports in a clear and organized manner. This is in response to criticism that similar reporting items are scattered in multiple places within regular reports, making it difficult for investors to comprehensively understand the content. By newly establishing items related to fundraising through securities issuance and shareholder meetings and concentrating related information in one place, the system has been improved to allow investors to make comprehensive investment decisions.

Additionally, some items such as business content have been subdivided so that investors can easily find the information they need. Business content, auditor's audit opinions, and other matters necessary for investor protection have been subdivided to enable investors to easily verify the information they require.

The format will be changed to add summary information to the business content and switch to a bottom-up writing method. Information about individual companies is described first, followed by an analysis of the entire industry. An FSS official pointed out, "The existing business content was written in a top-down manner, explaining the industry to which the company belongs first and then detailing the company's specifics, which took considerable time to understand the business content." Going forward, industry analysis will be placed at the end so that investors who need in-depth understanding can refer to it.

Furthermore, the vast amount of tables included in the main text of regular reports will be moved to the newly established '?.Detailed Table' section, and only summary tables will be included in the main text. The number of items presented in tables has been expanded to increase comparability between companies. These include the status of consolidated subsidiaries (summary), significant changes in management, changes in capital stock, voting system status, status of affiliated companies (summary), and status of investments in other corporations (summary).

The FSS stated, "By improving the regular report system to be more consistent, we focused on helping investors intuitively understand companies," and added, "We expect that by increasing the usability of regular reports through the establishment of detailed menus, provision of various summary tables, and introduction of detailed table items, it will help investors make rational decisions."

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