FSS "Large Unlisted Companies Must Submit Ownership Status Within 14 Days After Regular General Meeting"

As of 2023, unlisted joint-stock companies with total assets of 500 billion KRW or more must submit the ownership status of controlling shareholders and others to the Financial Services Commission and the Securities and Futures Commission within 14 days after the regular general shareholders' meeting. It was explained that if it is confirmed that ownership and management are not separated, the company may be subject to periodic designation.

On the 3rd, the Financial Supervisory Service announced that the deadline for submitting ownership status data for about 1,300 large unlisted companies has arrived.

Large unlisted companies refer to companies with total assets of 500 billion KRW or more at the end of the previous year. It also applies to companies belonging to disclosure-target companies under the Fair Trade Act with total assets of 100 billion KRW or more.

The periodic designation system is a system where the Securities and Futures Commission directly designates auditors for three years after listed companies, which have freely appointed auditors for six years, have completed that period.

Large unlisted companies where ownership and management are not separated are also subject to external auditor designation by the supervisory authority for the next three business years. The criteria for non-separation of ownership and management refer to companies where the controlling shareholder and related parties hold 50% or more of shares, or where the controlling shareholder or a related party is the CEO.

Companies must directly access the external audit contract reporting system to submit the information. If it is confirmed through this that ownership and management are not separated, the company may be subject to periodic designation. Large unlisted companies that have submitted their stock ownership status and meet the criteria for non-separation of ownership and management must also submit the auditor designation basic data report by September 14.

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