[Alpha Biz=(Chicago) Reporter Kim Jisun] Stock trading by insiders such as listed executives and major shareholders must be disclosed in advance from July next year.

The Financial Services Commission said on the 28th that a revision bill to the Capital Markets Act has passed the plenary session of the National Assembly. Under the revision, insiders of listed companies are required to disclose their purpose, price and quantity before the scheduled date of sale if they trade more than a certain amount of shares issued by the company. Such disclosures must be made within at least 30 days to a maximum of 90 days before the sale takes place.

Failure to disclose or falsely disclose the transaction plan will result in a fine of up to 2 billion won. The revision will go into effect in July next year following a process of promulgating government laws.

 

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