Disclosure
KOSDAQ Market_Penalty
To ensure the accurate and timely disclosure of business information regarding assets and management conditions, etc. or security matters by listed corporations, the FSCMA stipulates the disclosure obligations. The disclosure system on the FSCMA is divided into disclosure in the primary market and disclosure in the secondary market.
Types
Criteria for designation as unfaithful disclosure corporation.
- Not complied width disclosure obligation
Cases of not disclosing important corporate information by the disclosure deadline - Reversal of disclosure
Cases of reversing or denying the whole contents of disclosure already made - Alteration of disclosure
Cases of altering significant portion of the contents of disclosure already made
In designating as unfaithful disclosure corporation, the KRX-KOSDAQ Market gives an opportunity for the concerned listed corporation to present its case by sending a prior notice and ensures the fairness and reasonableness of such measure.
Issuance of prior notice
The KRX-KOSDAQ Market sends a prior notice to a listed corporation that falls under the criteria for designation as unfaithful disclosure corporation.
Filing a motion of objection
Of the corporations received a prior notice, any corporation, that has an objection to the designation as stated in the prior notice, must file a motion of objection to the KRX within 7 days of receiving the notice.
Designation as unfaithful disclosure corporation
- The KRX-KOSDAQ Market Division designates the concerned corporation as unfaithful disclosure corporation on the eighth day after issuing the prior notice, if no motion of objection is filed.
- In case where the concerned corporation files the motion of objection, the KRX-KOSDAQ Market Division determines the appropriateness of such designation through the deliverance of the Disclosure Committee, within 12 days of receiving the motion of objection.
In addition to legal the measures taken in accordance with the FSCMA and administrative measures by the FSC, the KRX, a self-regulatory organization, can take following measures against the unfaithful disclosure corporations.
Trading Suspension
- Once designated as unfaithful disclosure corporation, trading of stocks of the concerned corporation is suspended for one day on the day following such designation.
Public announcement of unfaithful disclosure
- Publicizing the relevant circumstances 5 times consecutively in the KOSDAQ Market Magazine.
- Publicizing for one month on disclosure medium: Attaching "Un" or “Unfaithful disclosure corporation” for one month in front of the issue name on stocks information terminals, etc.
Training of disclosure officer
The KRX organizes a training course for the disclosure officer and the staff member responsible for disclosure of the concerned corporation to prevent unfaithful disclosure in future. The officer and staff member of the concerned corporation must comply with the training program.
Request for a detailed report on the case and issuance of notice of caution
In cases where the concerned corporation was found not to be responsible for unfaithful disclosure or has violated on a minor matter that does not have much influence on the stock prices, the corporation may be asked to submit a detailed report on the case concerned or warned about the case.
Designation as investment-caution issue
- When a listed corporation on the KOSDAQ market is designated as unfaithful corporation at least twice within one-year period, the stock of such corporation is designated as administrative issue.
- When the corporation is once again designated as unfaithful corporation for the same reason within one year after having been designated as administrative issue, the cancellation of such designation is postponed for one year.
- Contents Manager :
- KOSDAQ Market Division//Choi, Ju-youn(02-3774-9541)
※ Data and information on the KRX website are provided for the purpose of improving availability of information for investment, not for trading securities. In spite of the efforts made in ensuring the accuracy of data and information, the KRX recognizes that unintentional and chance errors and delays occur. The KRX is not responsible for any loss resulted from the investments made using the data and information provided on its website.
