English versions of company disclosures to become mandatory from 2024

Vice Chairman of the Financial Services Commission Kim So-young speaks during an economic policy awards ceremony at the Korea Exchange in Yeouido, western Seoul, on Friday. [NEWS1]

English versions of company disclosures will gradually become mandatory starting from 2024 to increase information accessibility for foreign investors, said the Financial Services Commission (FSC) on Friday.

Vice Chairman of the FSC Kim So-young made the announcement at an economic policy awards ceremony held at the Korea Exchange in Yeouido, western Seoul, on Friday morning.

“In consideration of how much companies are prepared to release English disclosures, we will gradually obligate such disclosures beginning in 2024,” said Kim. “Focus will be given on essential information for investors. We plan to drastically improve the information accessibility environment so that foreign investors can receive sufficient knowledge in a timely manner.”

Mandatory English disclosures will be applied first to listed companies with large assets, according to Kim.

Kospi-listed companies with assets of 10 trillion won ($7.7 billion) or more — a total of 93 companies as of last year — will be required to disclose in English from 2024, and the 234 Kospi-listed companies with assets of 2 trillion or more will be obligated to do so from 2026.

“Sufficient information has not been provided in a timely manner so far to foreign investors despite the fact the share of foreign shareholders is quite high in our capital market,” said Kim Friday.

Foreign investors’ holdings in the stock market reached 30.7 percent as of the end of June, according to the FSC.

“We will also make additional improvements to our old financial system so that we can meet international standards and improve the environment for foreign investors,” said Kim.

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]