FSS: Large Unlisted Companies Must Submit Ownership Status Within 2 Weeks After General Meeting

The Financial Supervisory Service announced on the 2nd that large unlisted companies with a December fiscal year-end must submit ownership status data of controlling shareholders and others within 14 days after their regular shareholders' meeting.

The target companies are ▲those with assets of 500 billion KRW or more at the end of the previous year ▲companies required to submit business reports or belonging to a disclosure target corporate group under the Fair Trade Act with assets of 100 billion KRW or more.

This is a procedure to verify whether large unlisted companies meet the periodic designation criteria for ownership-management non-separation. Target companies must submit the ownership status report of controlling shareholders and others to the Financial Services Commission through the External Audit Contract Reporting System within 14 days after the conclusion of the regular shareholders' meeting.

In addition, large unlisted companies that meet the ownership-management non-separation criteria must additionally submit the 'Auditor Designation Basic Data Report.' For companies with a December fiscal year-end, the deadline is September 14.

Ownership-management non-separation companies refer to large unlisted companies where the combined shareholding ratio of controlling shareholders and special related parties is 50% or more of the total issued shares, and where the controlling shareholder or a special related party shareholder serves as the CEO.

An official from the Financial Supervisory Service explained, "We will cooperate with related organizations such as the Korean Institute of Certified Public Accountants to provide guidance to ensure that large unlisted companies do not violate the obligations under the External Audit Act." According to the External Audit Act, the Securities and Futures Commission may take measures such as restricting securities issuance and recommending dismissal or removal of executives against companies that violate the law by failing to submit the required data.