Designation as Unfaithful Disclosure Corporation - Designation Procedure
In designating as unfaithful disclosure corporation, the KOSDAQ Market provides enough opportunities for the concerned listed corporation to present its case to ensure procedural validity and fairness of such measure.
Issuance of Prior Notice
The KRX sends a prior notice to a listed corporation that falls under the criteria for designation as unfaithful disclosure corporation.
Filing a Motion of Objection
Any corporation, that has an objection to the designation as stated in the prior notice, can file a motion of objection to the KRX within 7 days of receiving the notice.
Designation as Unfaithful Disclosure Corporation
  • Through the deliberation of the KOSDAQ Market Disclosure Committee within 10 days after the issuance of the prior notice, the KOSDAQ Market Division makes the decision on whether or not to designate the concerned corporation as unfaithful disclosure corporation and demerit points and fine to be charged for the corporation no later than 3 days after the deliberation day of the committee.
  • In the case, however, the KRX may charge heavier or lighter demerit points considering the motive and importance of the violation, the affection to the investors and the history of the concerned corporation's fair practice of disclosure.