In designating as unfaithful disclosure corporation, the KRX gives the listed corporation concerned enough opportunities to present their opinion in order to ensure procedural validity and fairness of such measure.
- Prior Notice
The KRX issues a prior notice to a listed corporation that falls under the criteria for designation as unfaithful disclosure corporation
- Filing an Objection
Any corporation that has an objection to the designation as stated in the prior notice can file an objection to the KRX within 7 days of the notice..
- Designation as Unfaithful Disclosure Corporation
- Through the deliberation of the KOSPI Market Listing & Disclosure Committee within 10 days after the deadline for filing objection, the KOSPI Market Division makes the decision on whether or not to designate the corporation concerned as unfaithful disclosure corporation no later than 3 days after the deliberation day.
- However, if the KRX deems the deliberation of the Committee unnecessary considering the content of the violation, it may omit to the deliberation of the Committee.
- In case of designating a listed corporation as unfaithful disclosure corporation, the KRX may impose a fine of KRW 100 million or less for noncompliance of disclosure obligation, in addition to imposing the demerit points.