[Asia Economy Reporter Lee Jung-yoon] Financial authorities plan to gradually implement English disclosures starting in 2024, focusing on large listed companies, to ensure that foreign investors receive sufficient information.
Kim So-young, Vice Chairman of the Financial Services Commission, announced this at the '2022 Korea ESG Standards Institute Excellent Companies Awards Ceremony' held on the 2nd. She also explained, "As part of efforts to enhance the transparency of our corporate governance, the government will revise the system to align with global advanced markets."
The mandatory English disclosure will be gradually implemented from 2024 after a preparation period in 2023, focusing on large listed companies. KOSPI-listed companies with assets exceeding 10 trillion won must mandatorily disclose in English from 2024, and those with assets over 2 trillion won from 2026.
Vice Chairman Kim said, "Although the proportion of foreign shareholders in our capital market is quite high, there have been criticisms that sufficient information was not provided to them in a timely manner," adding, "We will significantly improve the information access environment so that foreign investors can receive sufficient information promptly." As of the end of June, the proportion of foreign investors' stock holdings in the securities market was 30.7% (based on market capitalization).
Additionally, the Financial Services Commission plans to strengthen transparency in corporate management by supporting the enhancement of shareholder meetings, the independence and expertise of the board of directors, and the role of institutional investors.
Vice Chairman Kim stated, "The government, together with the Korea ESG Standards Institute, will support the solidification of the Korean Stewardship Code so that institutional investors can fulfill their responsibilities as fiduciaries, and will continue to support institutional investors' exercise of shareholder rights through proxy advisory firms."
Furthermore, in preparation for the phased mandatory ESG (Environmental, Social, and Governance) disclosures, the government will specify related systems and promote the enhancement of the credibility of ESG rating agencies.
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