Foreign firms listing in Korea to get exemption
The Korean government plans to propose a law to exempt some foreign companies from financial audits when they are listed on Korean stock markets.The Ministry of Finance announced yesterday it had drafted a revised enforcement ordinance on the issue. The proposal would become effective March 31.
Under the new law, when foreign firms that are already listed on an overseas exchange attempt to list here, they would be exempt from an audit by outside officials. The ministry said that at these listed firms, “a certain level of accounting transparency is guaranteed.”
Presently all firms are subject to auditing before listing as ordered by the Securities and Futures Commission under the Financial Supervisory Commission. Before the auditing exemption took effect, the ministry would take into account the trustworthiness of the foreign exchange on which the overseas firm is listed, and also examine the quality of the auditing the firm had received overseas. To help improve the auditing, the ministry would ask the Financial Supervisory Service to increase its financial aid for the Korea Accounting Institute.
By Yoo Jee-ho Staff Writer [jeeho@joongang.co.kr]
with the Korea JoongAng Daily
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