Due to the impact of economic downturns, it was reported that KOSDAQ listed companies raised a total of 12.2 trillion won last year through paid-in capital increases and the issuance of securities related to stocks. This marks an increase of 20.8% (2.1 trillion won) from 2023. Related disclosures also surged.
The Korea Exchange announced on the 14th the report titled '2024 KOSDAQ Market Disclosure Count.' Last year, the total number of disclosures in the KOSDAQ market was 23,860, an increase of 6.8% (1,511 cases) from 2023.
By type of disclosure, regular disclosures accounted for the majority at 20,851 cases. Disclosures related to fundraising increased significantly. There were 1,353 capital increase disclosures and 1,067 disclosures related to stock securities issuance, marking increases of 27.8% and 18.7%, respectively, from 2023.
KOSDAQ listed companies raised 5.2 trillion won through paid-in capital increases, while they secured 7 trillion won by issuing convertible bonds (CB) and bonds with share options (BW). This is an increase of 900 billion won and 1.2 trillion won, respectively, compared to 2023.
Among regular disclosures, the types that saw an increase in 2024 compared to 2023 included disclosures for operational transfers, partitioning, and mergers for governance restructuring, which increased by 17.4% (51 cases); disclosures for capital reduction due to deteriorating performance, which increased by 47.5% (38 cases); disclosures for the disposal of shares of other companies to secure cash liquidity, which rose by 37% (64 cases); and disclosures for the disposal of tangible assets, which increased by 50% (24 cases).
However, disclosures related to corporate investment activities for new business initiatives or operational activities also increased by 7.9% (56 cases) compared to 2023. Influenced by the value-up program, disclosures for share buybacks, a typical shareholder return activity, also grew by 30.7% (135 cases) over the year.
In addition, there were 938 cases of fair disclosures, 112 cases of inquiry disclosures, and 1,959 cases of voluntary disclosures. Inquiry disclosures increased by 8.7% (9 cases) compared to 2023, significantly influenced by stock price volatility caused by political theme stocks. Last year, there were 721 English disclosures.
The number of designations for companies with dishonest disclosures was counted at 113. Among them, cases of dishonest disclosures involving distressed corporations accounted for more than half, totaling 61 cases. Types of dishonest disclosures included 48 cases of repeated disclosures, 33 cases of non-fulfillment of disclosures, and 32 cases of disclosure changes.
The exchange explained that amid the increase in corporations' fundraising disclosures due to the impact of the economic recession, many faced difficulties during the process, leading to a failure to secure the targeted amount of funds, which caused an increase in repeated disclosures. It was also noted that the economic impact has suppressed corporations' operational activities, leading to a decrease in contract volumes and an increase in disclosure changes.
Since more than half of the dishonest disclosures originated from distressed corporations, the exchange decided to strengthen disclosure management for these companies. A representative from the exchange said, "We will enhance the training for dishonest disclosure target corporations and continue to provide consulting support for the establishment of disclosure systems."