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Disclosure

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Corporate Governance

Korea Exchange introduced the "Comply-or-Explain (CoE)" approach for corporate governance disclosure, which have been effective since March 10, 2017.

  • Companies either comply with core principle (ten items), or explain publicly why if they do not comply.
  • Ten core principles were selected based on the Code of Best Practices for Corporate Governance, etc., and the principles are as follows:

    • Core Principle of Corporate Governance

The Financial Services Commission and Korea Exchange announced "Plans to Improve Corporate Governance Disclosure" in March 2018 in order to encourage participation of listed companies and enhance the quality of disclosures.

  • Starting from 2019, KOSPI-listed companies with total asset value of more than KRW two trillion* will be required to mandatorily disclose their corporate governance. The mandatory disclosure will be expanded to all KOSPI-listed companies from 2021.
    •     *As of the end of 2017, 189 companies(based on consolidated financial statements)
  • Also, the ten core principles will be detailed to improve the quality of disclosed information, and guidelines will be provided to specify details that corporate governance reports must entail, so that investors can be clearly informed of how companies comply with the core principles.