Meeting with Listed Companies, Financial Supervisory Service Chief Says "Considering Expansion of English Disclosures"... Strict Measures Against Investment Association's Evasive Disclosures

"Resolution of Factors Causing Undervaluation in the Capital Market"

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Lee Bok-hyun, Governor of the Financial Supervisory Service, announced on the 21st that he is considering expanding English disclosures to attract foreign investors who have recently been withdrawing. He also plans to establish ESG (Environmental, Social, and Governance) disclosure measures.

On the morning of the same day, Lee held a meeting with related organizations of listed companies at the Korea Listed Companies Association in Mapo-gu, Seoul, stating, "We will resolve the undervaluation factors of the domestic capital market and create an opportunity to leap forward as an advanced capital market," promising such institutional improvements.

He said, "We will improve the system so that treasury stocks can meet investors' expectations for enhancing shareholder value," and added, "I ask the management teams to pay close attention so that this can be used as an opportunity to improve corporate financing conditions by advancing into the global financial market."

He also plans to strictly take action against cases like EdisonEV, suspected of stock price manipulation by exploiting the acquisition of Ssangyong Motor, which circumvented disclosure regulations by using multiple investment associations. Lee stated, "We have prepared measures to specifically describe methods of management participation to sufficiently provide information to stakeholders when reporting large shareholdings for the purpose of influencing management rights, and we will implement this promptly."

He further emphasized, "We are continuously improving related systems to ensure that the rights and interests of common shareholders are not infringed upon not only in physical spin-offs but also in other corporate restructuring processes," and added, "We hope companies will be especially careful not to lose investors' trust through insiders' use of undisclosed material information."

Attendees at the meeting included Sohn Byung-doo, Chairman of the Korea Exchange; Jung Gu-yong, Chairman of the Listed Companies Association; Jang Kyung-ho, Chairman of the KOSDAQ Association; Kim Hwan-sik, Chairman of the KONEX Association; and Lee Byung-rae, Vice Chairman of the Korean Institute of Certified Public Accountants. Chairman Sohn mentioned that they are improving the 'ESG Information Disclosure Guidance' to help listed companies with ESG disclosures and are promoting the establishment of an organization to support accounting tasks for KOSDAQ-listed companies.

In response, Chairman Jung of the Listed Companies Association expressed the opinion that "ESG disclosures should be introduced gradually, considering their impact on overall management, including fundraising," and Chairman Jang of the KOSDAQ Association requested the relaxation of external audit obligations for internal accounting control systems for small listed companies.

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