FSS: Large Unlisted Companies Must Submit Share Ownership Status Within 14 Days of Shareholders’ Meeting

The Financial Supervisory Service has requested that large unlisted companies submit their shareholder status reports within the designated deadline.

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On April 2, the Financial Supervisory Service announced that large unlisted companies must submit a report on the status of shares owned by controlling shareholders and related parties to the Securities and Futures Commission of the Financial Services Commission within 14 days after the conclusion of their regular general shareholders' meeting.

A large unlisted company refers to a company with assets of at least KRW 500 billion at the end of the previous fiscal year, or a company with assets of at least KRW 100 billion that is either required to submit a business report or belongs to a corporate group subject to public disclosure under the Monopoly Regulation and Fair Trade Act.

The shareholder status report is a measure to determine whether a large unlisted company meets the requirements for non-separation of ownership and management. Large unlisted companies that meet these requirements will be subject to the designation of an external auditor for the next three fiscal years. In addition, they must also submit a basic data report for auditor designation by September 14. This requirement applies to companies where the combined shareholding ratio of controlling shareholders and related parties is 50% or more, and either the controlling shareholder or a shareholder related to the controlling shareholder serves as the CEO.

The shareholder status report must be submitted directly by the company through the External Audit Contract Reporting System. Required documents include an official letter, a report on the shareholdings of controlling shareholders and related parties as well as changes in the CEO, and a statement of changes in shares and other securities. Detailed information can be found on the website of the Financial Supervisory Service.

To submit, companies must log into the External Audit Contract Reporting System using the unique identification number and joint certificate received from the system, select the 'Company·Submission Documents' tab at the top of the website, and click 'Submit Status of Shares Owned by Controlling Shareholders, etc.' Afterward, they should fill out the information according to their company’s situation and attach the relevant documents.

If violations such as failure to submit materials occur, the Securities and Futures Commission may take actions such as recommending the dismissal or removal of executives or restricting the issuance of securities.

An official from the Financial Supervisory Service stated, "We will provide guidance to ensure that large unlisted companies do not violate obligations under the Act on External Audit, and will respond promptly to inquiries via the Financial Supervisory Service website or by phone."

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