Fair Disclosure
  • Fair disclosure system requires listed corporations, that wish to provide designated people such as institutional investors with important information not yet disclosed through the stock market, to first disclose it so that all market participants receive the same information.
  • Fair disclosure is to prevent unfair trading by supplementing the timely disclosure system, thereby encouraging rational business analysis, etc.
  • What: Information Applicable for Fair Disclosure
    Forecasts for business results such as sales or future/management plans, etc. and information regarding provisional business results and key management matters, etc.
  • Who: Providers of Fair Disclosure Information
    High-ranking persons with access to the information subject to fair disclosure and employees, etc. who have access to the same information due to their work responsibilities.
  • To Whom: Target Recipients of Fair Disclosure Information
    Those engaged in securities investment dealing and/or brokerage businesses both in Korea and abroad and those who have easier access to the information subject to fair disclosure compared to others.
  • How: When Offered Selectively
Disclosure Deadline

In principle, the deadline for the fair disclosure is before making such information available to recipients. However, in case where fair disclosure information has been made available due to an accident or minor error, it must be disclosed on the day such accident or error occurred. In case where the executive can substantiate that such release came about without knowledge, it may be disclosed on the day such fact was discovered by the executive.

Measures against Violation of the Fair Disclosure Obligation

Any listed corporation violating the fair disclosure obligation is subject to the same measures that are taken against the violators of timely disclosure obligation, e.g., designation as unfaithful disclosure corporation, trading suspension, publication of the fact about the designation, compulsory training program, and investigation into trading practices.

Application of the Safe Harbor Clause to the Case of Disclosures of Forecasted Information

The KRX may not take disciplinary measures against a listed corporation even though it cancels, denies or revises the forecasted information already disclosed via fair disclosures in the manner that satisfies the following:

  • Clearly states that the statement or the expression is information based on forecast
  • Clearly states about the assumption or basis of the judgment regarding the forecast or prospect
  • The statement or the expression mush have been duly made based on reasonable background or assumption
  • Includes a caution about the statement or the expression that the forecast figures might be different from the real results