All KOSPI-listed firms required to disclose governance reports, starting 2026
Revision aimed at bolstering transparency, governance reform in corporate management
An electronic board shows the benchmark KOSPI index closed at 3,133.74 points, up 18.79 points from the previous trading session at the Korea Exchange, Wednesday. Yonhap
A total of 842 firms listed on the country’s benchmark KOSPI will be required to disclose corporate governance information from next year, the country’s financial regulator said Wednesday.
The measure will encourage more firms to bolster transparency and governance reforms in corporate management, contributing to a healthy, sustainable capital market ecosystem.
KOSPI-listed firms will have to submit their governance reports on the previous year’s data by May 31 every year.
It is the latest in a series of efforts to promote transparent market operation since the Korea Exchange (KRX), the country’s bourse operator, introduced the disclosure requirement in 2017.
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The Financial Services Commission (FSC) said it has approved a revision to the law governing KRX-overseen corporate data disclosure.
The measure is stricter than previous regulations whereby the mandatory disclosure was limited to 541 firms with assets over 500 billion won ($363 million).
The FSC said the revision is expected to prompt a greater number of firms to establish healthy corporate governance practices.
FSC-affiliated institutions will give briefings and one-on-one consultations to help with smooth implementation.
Among model examples was a company with over 2 trillion won in assets, whose identity is withheld, which held shareholder meetings outside the usual heavily concentrated schedules.
The company has also conducted electronic voting annually since 2022, with online shareholder turnout exceeding 85 percent of the nonelectronic shareholder meeting turnout.
Some other companies revised corporate rules to bolster predictability in dividend payout schedules.
The latest disclosure requirement follows the guidelines of the G20 and Organization for Economic Cooperation and Development corporate governance principles, as well as environmental, social and governance guidelines.
Among 10 key principles are shareholder rights protection, shareholder meeting scheduling, electronic voting and communication with minority and foreign shareholders.
Also included are the company board’s responsibility for overseeing corporate management and maintaining independence and effectiveness in internal and external audits.
The firms also have to track communication records with institutional investors and have an English website tracking records of English information disclosures.