Provision of Corporate Disclosures in English from 2024 to Enhance Information Access for Foreign Investors

The FSC recently unveiled plans to enhance foreign investor access to Korean capital markets. Starting 1 January 2024, major KOSPI-listed companies are mandated to provide English disclosures on material information within three business days of filing Korean disclosures with the KRX. This marks the initial phase of a comprehensive initiative announced in January to improve foreign investor access.
The English disclosure requirement will unfold in two phases for KOSPI-listed companies, commencing with large firms from 2024 to 2025. The second phase, expected post-2026, will encompass the broader market. Companies with assets exceeding KRW10 trillion will need to submit English disclosures covering financial statements, decision-making details, and trading suspension matters within the stipulated three-day timeframe.
To aid companies in adapting to this requirement, the authorities will implement support measures. Special benefits, including listing fee exemptions, will be granted for outstanding English disclosures. Translation services by professionals will expand, and training courses on English disclosures will be strengthened. The English disclosure platforms, KRX’s KIND and FSS’s DART websites, will see improvements, including enhanced machine translation services and English search functions.
Indeed, regulatory updates to enforce the English disclosure requirement were completed in March. Training sessions and platform upgrades by KRX and related organizations have been ongoing. The KRX introduced an AI-based machine translation service on its KIND system from 18 December 2023, enhancing translation quality. A notification function on the FSS’s DART website will inform companies of their English disclosure requirement.
To ensure a smooth transition, the FSC will persist in providing various support programs. With the first phase set to commence in January 2024, the FSC anticipates that foreign investors will find it easier to access corporate information, contributing to the increased competitiveness of Korea’s capital markets.