Revised Guidelines on Corporate Governance Disclosure

The FSC published the Revised Guidelines on Corporate Governance Disclosure, which require listed companies to disclose their compliance with core principles of corporate governance and explain the reasons for non-compliance. The guidelines were introduced in 2017 and became mandatory for KOSPI-listed companies with total assets of KRW1 trillion or more in 2022. The scope of mandatory filing will be expanded to KOSPI-listed companies with total assets of KRW500 billion or more in 2024 and to all KOSPI-listed companies in 2026.
The revision reflects feedback from market participants, regulatory reforms, and recent developments in domestic and international corporate governance principles. The revised guidelines include new disclosure requirements on dividend policies, communication with minority shareholders and foreign investors, capital raising that may affect shareholders‘ interests, board diversity, directors‘ compensation and liability insurance, and executives‘ violations of the law.
The revised guidelines will apply to reports submitted in 2024 based on the 2023 performance. The KRX will reorganize the corporate governance review system and provide support for companies to ensure faithful disclosures. Companies that submit inadequate disclosures will be subject to corrective actions and disclosure of their names and details from 2025.