Disclosure
KOSPI Market_Penalty
Unfaithful disclosure refers to not complied with the disclosure obligation specified in the FSCMA and the Stock Market's rule, including the violations such as reversal or alteration of disclosure already made.
Designation as unfaithful disclosure corporation is a self-regulatory measure imposed by the KRX for the purpose of ensuring faithful compliance with its disclosure regulation by the listed corporations, and it is separate from the measures taken against the false disclosure in accordance with the FSCMA or the violation of disclosure obligation specified by the FSC.
Types
Criteria for designation as unfaithful disclosure corporation.
- Not complied with disclosure obligation
Cases of false or 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-Stock 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-Stock 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
- Through the deliverance of the KOSPI Market Listing & Disclosure Committee within 10 days of last day of objection filing period, the KRX-KOSPI Market Division makes the decision on whether or not to designate the concerned corporation as unfaithful disclosure corporation no later than 3 days after the deliberation day of the committee.
- Provided that there is no official objection, the KRX-KOSPI Market Division designates the concerned corporation as unfaithful disclosure corporation in last day of objection filing period.
- In case of designating a listed corporation as unfaithful disclosure corporation, the KRX-KOSPI Market Division may impose a fine of less than KRW 30 million for noncompliance of disclosure obligtion, in addition to the demerit points.
The KRX-Stock Market can take following measures against the unfaithful disclosure corprations.
Trading Suspension
- Trading for unfaithful disclosure corporations that receive demerits of more than 5 points is suspended. The suspension occurs on the day that the corporation is designated as an unfaithful disclosure corporation using the trading day as a standard.
Public announcement of unfaithful disclosure
- Publicizing the context and circumstances of the corporation’s unfaithful disclosure 5 times consecutively in the Stock Market Magazine from the day that the corporation is designated as such
- Attaching "Un" or “Unfaithful disclosure corporation” for one month on a table of market quotations in the Stock Market Magazine and stocks information terminals, etc.
- Publicizing corporation name, circumstances, and demerit points, etc. on the KIND system for one year.
Training of disclosure officer
The KRX-Stock Market 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.
Request for submission of improvement plan
For unfaithful disclosure corporations that accumulate 15 demerit points during the period under the designation as administrative issue or are designated as administrative issues, the KRX may request an improvement plan for the prevention of reoccurrences. The corporation concerned must then submit improvement plan within 10 days.
Designation as administrative issue
Corporations are designated as administrative issue if the demerit points accumulated reach 15 or more during the past year reckoned from the date the corporation receives demerit points due to circumstances such as designations as unfaithful disclosures.
- Contents Manager :
- KOSPI Market Division/Corporate Disclosure Rules & Regulation/Kim SungChun(02-3774-8745)
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