Timely disclosure is one of the typical self-regulatory functions operated by the Self-Regulatory Organizations such as the exchange. The purpose of the timely disclosure is to ensure continuous information equity in the stock market.

The FSCMA stipulates that a listed corporation shall disclose without delay its major corporate management-related issues which may occur irregularly in the secondary market. Detailed disclosure requirements are stipulated in the Disclosure Regulation of the KRX-KOSDAQ Market.

Therefore, a listed corporation is required to report to the exchange without delay if and when there is a fact and/or a decision which falls under the category of material business issues.

Also, if the material business issue regarding a subsidiary such as bankruptcy, M&A, exchange of shares, and transfer of major operations materially affects the consolidated entity, the holdings company or the controlling company is required to disclose the information.