The Securities Deliberation Committee Exempts 23 Companies from Sanctions for Delayed Business Report Submission Due to COVID-19

[Asia Economy Reporter Lee Jung-yoon] The Financial Services Commission's Securities and Futures Commission has decided to exempt penalties for companies that find it difficult to submit business reports and audit reports within the deadline due to the COVID-19 pandemic.

On the 23rd, the Securities and Futures Commission announced that it would exempt penalties for all 23 companies and 16 auditors who applied for penalty exemption.

Regarding the reasons for submission delays, 17 companies delayed the preparation of business reports and audit reports despite having prepared the pre-audit financial statements.

Among the companies exempted from penalties, 21 companies subject to business report submission and auditors must submit business reports by May 16, the deadline for the first quarter report this year, and foreign corporations by May 31. Additionally, 2 companies and auditors not subject to business report submission must submit audit reports by June 16.

For the 4 companies that delayed submission of pre-audit financial statements, the submission timing will be decided in consultation with auditors to secure the necessary period for a proper external audit.

To protect investors and resolve related uncertainties, listed companies will disclose the results of penalty exemption application processing. Furthermore, the Korea Exchange plans to defer the designation of management items and delisting procedures for listed companies that received penalty exemptions until the extended deadline.

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