The Financial Supervisory Service (FSS) announced on the 21st that as the year-end approaches, there is a possibility that companies will concentrate the disclosure of adverse information after the market closes on the last trading day of this year, the 28th, or on the market closing day, the 29th, so caution is required.
According to the FSS, in the past, some listed companies engaged in so-called "owl disclosures," where they disclosed adverse information such as embezzlement or breach of trust just before the year-end holiday period when investor interest wanes.
The FSS urged companies to disclose major information before the market closes on the last trading day to prevent unnecessary misunderstandings among investors and the media. They also requested that companies promptly carry out essential procedures such as board resolutions for major decisions and disclose information necessary for investment decisions in a timely manner.
Investors were advised to carefully check disclosures made after the market closes on the last trading day or on the market closing day, as these may contain adverse information. Furthermore, when investing in companies that frequently engage in such disclosure practices, investors should comprehensively review various disclosure documents such as business reports and securities registration statements in addition to major disclosures before making careful investment decisions.
The Korea Exchange plans to reannounce disclosures classified as owl disclosures through the Korea Exchange’s electronic disclosure system (KIND) on the first trading day after the holidays, January 2nd next year.
An FSS official emphasized, "We will take strict action if any unfair trading practices are found in future disclosures."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
