Compliance Rate of Key Corporate Governance Indicators for Listed Companies at 65%... Up 6%p from Previous Year

[Asia Economy Reporter Ji-hwan Park] The compliance rate for corporate governance disclosures among companies listed on the KOSPI market with total assets exceeding 2 trillion won reached 64.6% this year, marking a 6 percentage point increase from the previous year.

On the 12th, Samil Accounting Corporation's Audit Committee Center announced that it had analyzed the corporate governance reports of 215 KOSPI-listed companies with total assets over 2 trillion won and recently published the "Trend Report for Audit Committees 2021."

Marking three years since mandatory disclosure began, corporate governance reports have grown increasingly important as ESG has become a key focus in corporate management and a prevailing trend in capital markets. Currently, companies listed on the KOSPI market with assets exceeding 2 trillion won are required to disclose corporate governance reports.

According to the comprehensive improvement plan for corporate disclosure systems released by the Financial Services Commission in January, the scope of mandatory corporate governance report disclosures will be gradually expanded to include all companies listed on the KOSPI market by 2026. The Trend Report indicates that since the mandatory disclosure of corporate governance reports, compliance rates for key indicators have steadily increased, showing that companies are paying more attention to corporate governance and making efforts to improve it.

The average compliance rate over the past three years rose from 52.9% in 2019 to 58.6% last year and 64.6% this year. The proportion of companies complying with 11 or more of the 15 key indicators also increased by 15 percentage points from the previous year to 35%.

Samil Accounting Corporation emphasized, "Corporate governance reports are no longer just a matter of preparing and disclosing reports as a legal obligation," adding, "Management and the board of directors must deliberate to find the most desirable model for the company from the perspective of long-term corporate value and respond agilely to market changes."