Definition of Unfaithful Disclosure

Unfaithful disclosure means that a listed corporation fails to comply with the disclosure obligation specified in the FSCMA and the KOSPI Market Disclosure Regulation and corresponds to the breach of the disclosure regulation such as failure of disclosure, reversal or alteration of disclosure already made.

Designation as unfaithful disclosure corporation is a self-regulatory measure imposed by the KRX for the purpose of ensuring faithful compliance with its disclosure regulation by the listed corporations, in addition to the disciplinary measures taken against the false disclosure in accordance with the FSCMA or against the violation of disclosure obligation by the FSC.

Types

Listed corporations that falls under any of the followings are designated as an unfaithful disclosure corporation.

  • Failure in Complying with Disclosure Obligation
    • Cases of failing to make a disclosure of a material business matter within the deadline
    • Cases of falsely making or not making disclosures of a material business matter
    • Cases of not making revised disclosures within the deadline, which is requested by the Exchange as for the disclosures that are exempted from confirmation
  • Reversal of Disclosure
    Cases of cancelling or denying the whole contents of disclosure already made
  • Alteration of Disclosure
    Cases of altering significant parts of disclosure already made