Government Grants Exemption from Administrative Sanctions for Delayed Submission of Business Reports

[Asia Economy Reporter Ji Yeon-jin] The government has decided to exempt administrative sanctions for delays in submitting business reports this year as the spread of COVID-19 continues.

On the 23rd, the Financial Supervisory Service (FSS) announced that companies and auditors who are at risk of failing to submit business reports and other documents on time due to delays in settlement and external audits caused by COVID-19 this year can apply for exemption from sanctions to the FSS or the Korean Institute of Certified Public Accountants (KICPA).

Failure to submit or late submission of business reports, financial statements, and audit reports are subject to administrative sanctions under the Capital Markets Act and the External Audit Act, and such companies may be designated as management-listed companies by the Korea Exchange. However, financial authorities have been exempting administrative sanctions since the global COVID-19 pandemic began in 2020.

The application period is from the 7th to the 14th of next month, and the fact of application will be disclosed on the websites of the FSS and KICPA, as well as on the Korea Exchange disclosure system.

For companies with a December fiscal year-end, applications can be made if ▲ the company’s major business sites (including subsidiaries) are located in countries affected by COVID-19 or conduct significant operations in such countries, and the preparation of financial statements or external audits for the 2021 fiscal year were delayed due to COVID-19 or various measures for COVID-19 prevention ▲ auditors find it difficult to complete the 2021 fiscal year external audit on time due to COVID-19 or measures such as closure of company or auditor offices for COVID-19 prevention ▲ or other unavoidable reasons.

Companies exempted from sanctions must submit their business reports and related documents by May 16, the deadline for the first quarter report submission this year.

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