Disclosure Rules Made Stricter for Larger Firms

Home > Business > Finance

print dictionary print

Disclosure Rules Made Stricter for Larger Firms

The Financial Supervisory Service said Sunday that it would strengthen disclosure standards for firms with assets of more than 2 trillion won ($1.5 billion) that are listed on the Korea Stock Exchange or the Kosdaq market.

The stricter rules would require such companies to inform shareholders and the investing public when changes of just 5 percent or more of their capital, sales or shareholders' equity occur, down from the current 10 percent.

"The rules will be reinforced because many big firms do not make large deals public," said an official at the agency, which did not say when the changes, which would affect 80 to 90 firms, would take effect.

Under current rules, companies with annual sales of more than 2 trillion won do not have to disclose that they have an order worth between 100 billion won and 200 billion won. If revised, the rules would force them to make public disclosures when they accept an order of 100 billion won or more.

The regulatory body also said that listed firms would be required to disclose information involving the following decisions: canceling shares, acquiring shares to be canceled, adjusting the price of convertible bonds, changing auditors, and swapping or transferring stocks.



by Huh Gwi-shik

Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)