[Apha Biz=(Chicago) Reporter Paul Lee] Starting next year, KOSPI-listed companies with assets of more than 500 billion won are required to disclose corporate governance reports. The report also needs to include whether the dividend process has been improved so that investors can decide on their investments by looking at the company's dividends.

The Financial Services Commission said on the 12th that it has prepared a revision to the guidelines for corporate governance reports. This revised guideline will be applied from the report submitted next year based on this year's performance.

The disclosure of corporate governance reports is a system that requires the government to disclose whether it complies with key principles of governance and explain why it fails to comply with them. Since it was first introduced as a self-disclosure by the Korea Exchange in 2017, it became mandatory for companies with more than 2 trillion won in assets among KOSPI-listed companies in 2019, and expanded to more than 1 trillion won from 2022. It will be expanded to more than 500 billion won from next year and to all KOSPI-listed companies from 2026.

The revision requires companies to disclose whether they have improved their dividend procedures in accordance with the law. Earlier this year, the dividend process was improved to allow investors to decide on investments by looking at dividends through amendments to the Capital Markets Act.

 

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