Korea Exchange to Revise Mandatory Disclosure Rules for Listed Companies on Serious Industrial Accidents

The disclosure regulations will be revised to require listed companies where serious industrial accidents have occurred to obligatorily inform investors about such incidents.

According to the financial investment industry on September 4, the Korea Exchange announced the previous day that it plans to revise the disclosure regulations for the KOSPI, KOSDAQ, and KONEX markets. The main point is to impose a disclosure obligation on listed companies if a serious industrial accident occurs or if there are related criminal penalties.

Specifically, a new disclosure obligation will be introduced when a serious industrial accident occurs or when criminal penalties related to violations of the Serious Accidents Punishment Act are confirmed. If the company has reported the status and response measures regarding the accident to the Minister of Employment and Labor, this must also be disclosed.

Regarding criminal penalties, disclosures must be made at each stage of the legal process, including the first trial, the appeal, and the final ruling.

For the KOSPI and KOSDAQ markets, if a subsidiary of a holding company or a domestic affiliate of a controlling company experiences a serious industrial accident or receives criminal penalties for violating the Serious Accidents Punishment Act, this is also subject to disclosure.

The Korea Exchange plans to finalize the timing and details of the revised disclosure regulations in consultation with the financial authorities after collecting opinions until September 10.

Previously, on August 19, the Financial Services Commission held a 'Financial Sector Response Meeting on Serious Industrial Accidents' and announced that it would begin reflecting 'serious accident risk' in financial sector loan reviews. At the same time, it stated that companies would be required to make timely disclosures through the exchange in the event of serious industrial accidents. The purpose is to provide investors with the necessary information to make informed decisions, considering the potential for increased volatility in stock prices and bond yields due to serious industrial accidents.

An official from the Korea Exchange said, "As social interest in serious industrial accidents is rising and there are calls for further improvements, we believe that providing this information will be helpful for investment and other decisions."