Securities Disclosures Reach 19,000 Cases Last Year, Up 16%... Active Response to Rumors and Reports

Increased Disclosure of Sustainability Management Reports Amid Growing ESG Interest

[Asia Economy Reporter Lee Seon-ae] Last year, in the KOSPI market, all disclosures except inquiry disclosures such as comprehensive disclosure, voluntary disclosure, and fair disclosure generally increased due to the establishment of an active and autonomous disclosure policy by companies. This was in response to rumors and reports. English disclosures doubled compared to the previous year, indicating that they have entered the establishment phase.

According to the Korea Exchange on the 16th, the total number of disclosures by KOSPI-listed companies last year was 18,945, an increase of 16.0% compared to the previous year. During this period, ad-hoc disclosures were 15,246, up 14.2%, voluntary disclosures were 1,720, up 47.6%. Fair disclosures were 1,930, up 10.7%, English disclosures were 1,600, up 107.8%. Inquiry disclosures decreased by 35.5% to 49 cases.

Ad-hoc disclosures increased in single sales and supply contracts (+30.7%) thanks to the economic recovery trend, and investment-related disclosures such as acquisition/disposal of other companies' stocks (+39.0%) and acquisition/disposal of tangible assets (+24.8%) also increased. Disclosures related to corporate financial structure and governance, such as debt guarantees/collateral provision (+39.3%) and changes in major shareholders (+40.7%), also increased.

Disclosures by subsidiaries (+85.4%) also showed a significant increase. Decisions on capital increases by subsidiaries and decisions on acquisition/disposal of other companies' stocks by subsidiaries accounted for about 68% of all subsidiary disclosures. Comprehensive disclosures of major management matters related to investment decisions (+7.9%) increased overall compared to the previous year due to a significant rise in clinical trials and product approval disclosures (+514.3%) by pharmaceutical and bio companies, despite a decrease in patent acquisition disclosures (-49.2%).

Voluntary disclosures increased in line with the trend of ad-hoc disclosures, with voluntary disclosures related to single sales and supply contracts (+38.6%) and acquisition/disposal of other companies' stocks (+159.7%) rising. Due to companies' active responses to rumors and reports, explanatory disclosures (+134.2%) increased significantly. In a situation where social interest in ESG (environment, social, governance) is high, disclosures of corporate sustainability management reports (+100.0%) also increased significantly.

Fair disclosures increased due to companies strengthening IR activities and improving performance, with provisional business results (+8.9%) and forecast/prediction disclosures related to sales, etc. (+16.9%) rising. Disclosures related to ad-hoc disclosure obligations (+24.1%) also increased thanks to the active willingness of listed companies to provide information, and in particular, future business plans and management plans (+95.0%) related to future business promotion increased significantly.

Inquiry disclosures increased (+33.3%) due to reports on embezzlement, breach of trust, and changes in major shareholders, reversing the recent downward trend. There were no inquiry disclosures due to sharp stock price drops, and inquiry disclosures due to changes in trading volume (-71.9%) and sharp stock price rises (-11.1%) decreased.

English disclosures increased significantly in both the number of disclosures (+107.8%) and the number of submitting companies (+37.8%) thanks to the Korea Exchange's support services for listed companies. Ad-hoc disclosures (+111.0%) and fair disclosures (+56.5%) increased, and especially voluntary disclosures (+590.5%) increased about sevenfold, expanding English disclosures across all disclosure types.

Meanwhile, the number of companies designated for unfaithful disclosure was 18, a slight increase compared to the previous year. By type, non-fulfillment of disclosure (+6 cases) and disclosure changes (+3 cases) increased compared to the previous year, while disclosure reversals (-6 cases) decreased. The number of designations related to companies' issued securities decreased, but designations related to business/production activities and investment activities increased. Cases of designation for unfaithful disclosure due to violations of fair disclosure and comprehensive disclosure also occurred.

A Korea Exchange official said, “The Exchange will continue to encourage active and proactive disclosure compliance by listed companies and strengthen disclosure education to ensure faithful disclosure,” adding, “We will actively support the expansion of English disclosures by listed companies to enhance foreign investors' accessibility to the domestic market.”

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