"All KOSPI-Listed Companies Required to Submit Corporate Governance Reports Starting Next Year"

Starting in 2026, all companies listed on the KOSPI will be required to disclose their corporate governance reports. Previously, this requirement was limited to large listed companies with assets of 1 trillion won or more, but it will now be expanded to include all companies. The government aims to enhance the transparency of the domestic capital market and increase investor confidence through this measure.

On July 9, the Financial Services Commission approved a partial amendment to the "Korea Exchange KOSPI Market Disclosure Regulations" at its 13th meeting, which expands the scope of companies required to disclose their corporate governance reports.

The corporate governance report disclosure system requires companies to disclose whether they comply with key principles of corporate governance. If a company does not comply, it must provide an explanation for the non-compliance (Comply or Explain). Since its initial introduction as a voluntary disclosure by the Korea Exchange in 2017, the mandatory disclosure requirement has been gradually expanded.

With this amendment to the disclosure regulations, the mandatory disclosure requirement for corporate governance reports, which currently applies only to KOSPI-listed companies with total assets of 500 billion won or more, will be expanded next year to all listed companies. As of the end of last year, this covers 842 companies.

In preparation for the expanded disclosure requirement, the Korea Exchange and the Korea Listed Companies Association plan to provide guidance on preparatory matters, one-on-one consulting, practical training for those responsible, executive education, as well as regional briefings and workshops. These efforts are intended to support newly obligated companies in smoothly fulfilling their disclosure requirements.

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