Designation as Unfaithful Disclosure Corporation - Penalty Measures on Unfaithful Disclosure Corporations
The KRX may take following measures to those listed corporations designated as unfaithful disclosure corporation.
Trading Suspension
Trading for unfaithful disclosure corporations that receive demerits of 5 points or more is suspended for one trading day on which the corporation is designated as an unfaithful disclosure corporation.
Public Announcement of Unfaithful Disclosure
  • Publicizing the context and circumstances of the corporation’s unfaithful disclosure 5 times consecutively in the Daily Stock Market Review from the day that the corporation is designated as such
  • Publicizing the corporation name, reason of designation, demerit points, etc. on the KIND system for one year
Education for Unfaithful Disclosure Corporations
The KRX organizes a training course for an officer and the staff member in charge of disclosure of the concerned corporation to prevent unfaithful disclosure in the future.
Request for Submission of Improvement Plan
When an unfaithful disclosure corporation is designated as administrative issue due to the failure of complying its disclosure obligation and when additional cumulative demerit points reaches 10 or more during the time period of the designation of administrative issue, the KRX may request an improvement plan for the prevention of reoccurrences. The corporation concerned must then submit the improvement plan within 10 days.
Designation as Administrative Issue
Corporations are designated as administrative issue if the cumulative demerit points reach 15 or more within last 1 year counting from the time the corporation receives demerit points due to the designations.
Listing Maintenance Review
If an administrative issue receives demerit points of 15 or more within 1 year after its designation as unfaithful disclosure corporation or the administrative issue is designated as unfaithful disclosure corporation due to the breach of disclosure obligation purposely or by gross negligence on matters that may seriously affect corporate management, the corporation is subject to the listing maintenance review.