Press Releases - Financial Services Commission

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Jul 09, 2025

All KOSPI-listed Firms to be Subject to Mandatory Corporate Governance Disclosure Duty from 2026

The Financial Services Commission held the 13th regular meeting on July 9 and approved a partial revision to the Korea Exchange (KRX) disclosure rules expanding the duty of mandatory disclosure of corporate governance report to all KOSPI-listed firms from 2026. In a comply or explain approach, the disclosure of corporate governance report allows businesses to open up their compliance status on key corporate governance principles. It was first introduced in 2017 as a voluntary disclosure and has moved to a mandatory disclosure system with more and more companies becoming subject to the mandatory disclosure duty. With the revision of the KRX disclosure rules, this mandatory disclosure of corporate governance report will be expanded to all KOSPI-listed companies from 2026. This will increase the number of firms being subject to the mandatory corporate governance disclosure duty from 541 now (those with total assets worth KRW500 billion or more, as of end-2024) to 842 (all KOSPI-listed firms, as of end-2024). With the expansion of corporate governance disclosure duty, it is expected that there will be more voluntary efforts taken by businesses to make improvements to their governance structures. It is also expected to help boost transparency in corporate management practices. To facilitate a seamless transition, the KRX and the Korea Listed Companies Association plan to provide support through (a) preparatory guidance, (b) one-on-one consultation, (c) on-the-job training for compliance officers and executive officers, and (d) regional information sessions and workshops. The FSC and the KRX will continue to work to ensure a seamless transition in expanding the duty of mandatory disclosure of corporate governance report. * Please refer to the attached PDF for details.
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Oct 19, 2023

Revised Guidelines on Corporate Governance Disclosure

I. Overview and Progress of the System Corporate governance disclosure was introduced to encourage listed companies to voluntarily enhance their corporate transparency. Companies are required to disclose their compliance with the core principles of corporate governance and explain* the reasons for non-compliance based on a Comply or Explain approach. * The guidelines present a generally recommended corporate governance structure, such as those in the G20/OECD Corporate Governance Principles, allowing companies the discretion to select a governance structure that suits them, while requiring them to provide explanations for non-compliance (10 core principles, 28 detailed principles). Corporate governance disclosure was voluntary when it was first introduced in Korea by the Korea Exchange (KRX) in 2017. In 2019, it became mandatory for KOSPI-listed companies with total assets of KRW2 trillion or more, and in 2022, the scope of companies subject to mandatory filing was expanded to KOSPI-listed companies with total assets of KRW1 trillion or more. * A review at the end of 2022 showed that the average compliance rate for key indicators among companies with assets of KRW2 trillion or more significantly improved from 63.5% in 2021 to 66.7% in 2022. This was evaluated as a positive contribution to enhancing corporate transparency. ** [Schedule] (2019) Total assets of KRW2 trillion or more (2022) KRW1 trillion or more (2024) KRW500 billion or more (2026) All KOSPI-listed companies In 2019, the KRX established the guidelines on corporate governance disclosure, providing core principles of corporate governance and detailed reporting standards to ensure that companies provide faithful and comparable information in their disclosures. The guidelines were revised in 2020 and 2022 to reflect market conditions. II. Background and Key Details of the Revision The revision of the guidelines incorporates feedback received during the implementation of corporate governance disclosure in li
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Mar 07, 2022

Revised Guidelines on Corporate Governance Disclosure to Strengthen Shareholder Protection

The FSC introduced revisions to the guidelines on corporate governance disclosure for listed companies which aim to strengthen shareholder protections beginning from the end of May regulatory filing this year. Background Corporate governance disclosure was introduced on listed companies in March 2017 to encourage companies to voluntarily self-disclose their compliance with the core principles of corporate governance or to provide explanations in case of non-compliance, thereby promoting more transparency in corporate management. Corporate governance disclosure filing was voluntary when first introduced in March 2017. Afterwards, in accordance to the plan for a gradual expansion of application, it became mandatory in 2019 for KOSPI-listed firms holding total asset of KRW2 trillion or more. Starting from 2022, the mandatory filing has been expanded to KOSPI-listed firms with total asset of KRW1 trillion or more and the total number of companies this year that will be subject to the mandatory filing of corporate governance disclosure is expected to increase to 265 entities. The corporate governance disclosure system has made contributions to boosting management transparency of listed firms. As more entities will become subject to the mandatory filing from this year, the authorities are introducing the following revisions to improve the guidelines on corporate governance disclosure. Key Details I. Establish a Rule on Shareholder Protection in Business Split Off A split off is a divestment method where a parent company carves out a part of its business and creates a subsidiary which is then wholly owned by the parent company. As few companies have recently split off their business and went ahead with IPO of new subsidiaries, the issue has become contentious. Those in favor argue that IPO of a new subsidiary after a split off is inevitable to ensure the growth of a new business sector as doing so allows large scale fundraising without a concern for diluting shares of the
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