The Korea Exchange (KRX) will amend its disclosure regulations to require that corporations involved in 'serious accidents' mandatorily disclose related situations.
According to the financial investment industry on the 4th, the exchange announced the amendment of the disclosure regulations for the previous day concerning the securities market, KOSDAQ, and KONEX. The essence is to impose a disclosure obligation on listed companies in cases of serious accidents and related criminal penalties.
Specifically, a new obligation to disclose will be established when there is confirmation of criminal penalties related to the occurrence of serious accidents and violations of the Serious Accident Punishment Act, and it will be required to disclose if reports on the status and response measures regarding serious accidents are made to the Minister of Employment and Labor.
Disclosure will also be carried out when there are criminal penalty judgments (first trial, second trial, final trial).
In the case of the securities market and KOSDAQ market, serious accidents or criminal penalties related to violations of the Serious Accident Punishment Act occurring in domestic subsidiaries of holding companies or controlling companies will also be included in the disclosure subject.
The exchange plans to finalize the timing of the amendment and implementation of the disclosure regulations after collecting opinions by the 10th of this month and consulting with financial authorities.
Previously, the Financial Services Commission held a 'Meeting on Financial Sector Response to Serious Accidents' on the 19th of last month, stating that it would formally reflect 'serious accident risk' in loan assessments by the financial sector and that corporations would be required to disclose situations such as serious accidents through the exchange on an ongoing basis.
This is intended to provide necessary information for investment decisions considering the potential for increased volatility in stock prices and bond yields due to serious accidents.