Exchange Announces Key Inspection Items for Corporate Governance Reports This Year

The Korea Exchange (KRX) has announced key inspection points in advance for corporate governance reports of KOSPI-listed companies this year. The focus will be on items that have shown insufficient disclosure quality over the past three years and on matters related to the disclosure of corporate value enhancement plans.

On the 14th, the Korea Exchange stated that it plans to check whether KOSPI-listed companies have accurately and thoroughly prepared their corporate governance reports in accordance with the guidelines provided by the exchange. A total of 10 key inspection items were selected, including 4 core indicators, 5 detailed principles, and 1 item related to corporate value enhancement plans. KOSPI-listed companies with consolidated assets of 500 billion KRW or more are required to submit corporate governance reports.

Provided by Korea Exchange

Among the core indicators of the corporate governance report, the following were selected as key inspection points: ▲providing predictability regarding cash dividends ▲establishing and operating internal control policies such as risk management ▲setting up an independent internal audit department (support organization for internal audit tasks) ▲holding quarterly meetings between internal audit bodies and external auditors. In the detailed principles, in addition to the above four items, ▲establishing shareholder protection policies regarding changes in ownership and business structure is added.

The exchange explained that, especially for matters related to the detailed principles, it will closely examine whether mandatory disclosure items have been included (content completeness), whether the basis for compliance judgment is provided, and whether reasons for non-compliance and future plans have been sufficiently described (explanation completeness).

After the report submission deadline on June 2, the exchange plans to promptly inspect these matters, complete follow-up actions such as corrective disclosures, and finalize disclosure analysis. To support companies in preparing thorough reports, the exchange will provide preparation standards for each key inspection item through the electronic disclosure system (KIND) and the ESG portal, and will also conduct training sessions for practitioners.