Exchange Conducts Consulting for Establishing Disclosure System Targeting New and Small·Innovative Companies

[Asia Economy Reporter Gong Byung-sun] Opportunities will be available for newly listed, small, and innovative companies that need to establish disclosure systems to receive support.

On the 15th, the Korea Exchange announced plans to conduct a "Disclosure System Establishment Consulting" service that will assess the current status of disclosure system establishment and internal information management levels, and propose improvement measures.

This support plan aims to enhance the reliability of disclosure information for KOSDAQ-listed companies and strengthen the disclosure capabilities of companies in the early stages of growth. In fact, although the penalty limit for disclosure violations was raised from 100 million KRW to 500 million KRW and the substantive review criteria related to unfaithful disclosures were strengthened, the number of companies with unfaithful disclosures continues to increase. The number of such companies was 60 in 2017 and gradually rose to 100 last year.

This consulting will be conducted from this month until December for a total of 95 companies, selected from applicants including companies newly listed within the past three years and small and innovative companies. This is nearly four times the 25 companies supported last year. These companies were selected based on a comprehensive consideration of the necessity of establishing disclosure systems and their current establishment levels, prioritized accordingly.

The Exchange stated, "We will continue to support the strengthening of disclosure capabilities for small and innovative companies through disclosure system establishment consulting," and added, "Consulting to enhance internal accounting management capabilities of KOSDAQ-listed companies under the new External Audit Act will also accept applications in May to support companies in improving the soundness of their accounting management."