Starting next year, KOSPI-listed companies with assets exceeding 10 trillion won (US$7.67 billion) will be obligated to submit disclosures in English. This mandatory requirement is expected to enhance information accessibility for foreign investors.
The Financial Services Commission announced on Dec. 17 that large-cap KOSPI-listed firms must submit English disclosures within three days of their Korean disclosures for critical information in stock exchange filings, effective Jan. 1, 2024.
The mandatory implementation of the first phase of the “Gradual Expansion of English Disclosures” plan, as outlined in the “Enhancement Measures for Foreign Investor Accessibility to the Capital Market” announced in January, is to be in effect.
According to the plan, the phased implementation of mandatory English disclosures is set to occur in two stages. In the first stage from 2024 to 2025, followed by the second stage from 2026 onward, large-cap listed companies will progressively be obligated to disclose information, with a focus on crucial details, in English. Additionally, supportive measures to facilitate the spread of English disclosures will be concurrently implemented.
From 2024 onwards, KOSPI-listed companies with assets surpassing 10 trillion won (US$7.67 billion) will be required to submit mandatory English disclosures. This obligation applies to matters such as financial settlements, including decisions regarding cash or in-kind dividends, significant managerial decisions like decisions on stock dividends and paid-in capital increases, and situations triggering trading halts such as decisions on stock cancellations. In these instances, after submitting disclosures in Korean to the stock exchange, companies must also submit English disclosures within three days.