Exchange, voluntary disclosure system introduced corporate governance structure ... Unknown effectiveness

The [financial newspaper goyounghun Korea News] Korea Exchange is expanding to provide investment information, and through this 'Comply or Explain' to strengthen corporate management transparency (principle comply or explain exceptions) introduced a scheme of corporate governance disclosure.

Exchange announced the implementation of corporate governance disclosure in the same way from 10th. This system is significant for the company ever explain the reasons for its failure to adhere to when and whether the investor for the selection of core principles refer to the exchange and corporate governance best practices. Since February of projects submitted within the legal deadline and the report, first reported in 2017 shall apply within six months after the legal deadline to submit.

Corporate governance disclosure has not introduced a new separate sanctions in accordance with the executory by a company that wants to corporate reputation management and transparency disclosures voluntarily.

As recently raised from foreign investors such as Korea discount phenomenon is due to governance problems that trend awareness of the importance of ESG (Environment, Social Responsibility, Governance) spread.

Exchange is predicted to be raising the corporate value and return on investment gotta enhanced market reputation for governance of the investors with the introduction of corporate governance disclosure. Institutional market conditions, when introduced can be flexibly adjusted in accordance with the disclosure obligations and corporate environment.

But now with the introduction gotta pay, without considering the adaptation period and enforceable sanctions for breach of environmental disclosures new voluntary disclosure scheme effective, there is the question going out opinion.



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