The South Korea Financial Services Commission announced that government-approved amendments to the Enforcement Decree of the Financial Investment Services and Capital Markets Act and related rules will strengthen listed companies’ disclosure obligations, led by expanded and more frequent reporting on treasury stock holdings and plans. The revised regime is scheduled to take effect from 30 December and will apply starting with companies’ 2025 annual business report filings. When treasury stock holdings are 1% or more of issued shares, companies must disclose their holding status and forward plans twice a year, replacing the previous 5% threshold and annual-only reporting, with upgraded forms requiring more detail on six-month plans. Annual and semi-annual disclosures must also compare previously announced treasury stock plans with actual implementation over the subsequent six months, with explanations required where deviations are considered significant at 30% or more. The amendments establish a basis for aggravated penalties for repeat disclosure violations and broaden available sanction tools, including recommendations to remove executives, restrictions on issuing securities, penalty surcharges, and criminal punishment. Separately, annual and semi-annual reports must provide more detailed disclosure on serious industrial accidents, including the occurrence, damage situation, response actions, and future expectations, and upgraded forms will provide shareholders with more detailed information on board meeting statements on major management matters such as M&A, asset transfers, share swaps, and spin-offs. The rule changes take effect from 30 December, with listed companies expected to begin reporting under the revised disclosure requirements in their 2025 annual business reports and subsequent semi-annual filings.
South Korea Financial Services Commission 2025-12-23
South Korea Financial Services Commission approves tighter treasury stock disclosures for listed companies with 1% threshold effective 30 December
The South Korea Financial Services Commission approved amendments to the Enforcement Decree of the Financial Investment Services and Capital Markets Act, enhancing disclosure obligations for listed companies. Key changes include more frequent and detailed reporting on treasury stock holdings and plans, with a new threshold of 1% of issued shares, and expanded disclosure on serious industrial accidents. Effective 30 December, the revised regime introduces stricter penalties for disclosure violations and requires detailed board meeting statements on major management matters.