The Korea Exchange announced on the 31st that it will revise the enforcement rules for disclosure regulations in the KOSPI, KOSDAQ, and Konex markets to improve the stock market delisting system.
This is part of the proposed system improvements presented at the joint seminar on initial public offering (IPO) and delisting regulations co-hosted by the Korea Financial Investment Association and the Capital Market Research Institute in January of this year.
The main content of this revision is to establish a basis for corporations undergoing substantial reviews of listing eligibility to publicly disclose key elements of their improvement plans when granted a period for improvement. However, specific details regarding mergers and acquisitions (M&A) and other business secrets deemed inappropriate for external disclosure are excluded. The enforcement rules for the relevant disclosure regulations will take effect on July 1.
A representative from the exchange noted, "During the substantial review period for listing eligibility, in addition to the market guidance from the exchange related to the review process, providing key elements of the corporations' improvement plans could contribute to investor protection."