The FSC/FSS released on June 28 draft proposals put forth by Korea Securities
Research Institute to reduce regulatory compliance burden faced by publicly-held companies. The draft proposals are the result of a joint effort between KSRI and a task force made up of experts and representatives from the FSC/FSS, Korea Exchange, Korea Listed Companies Association and KOSDAQ Listed Companies Association.
Regulatory reform on accounting, disclosures and corporate governance for publicly-held companies has significantly boosted investor protection and market
transparency in recent years. While these are clearly welcome and positive developments for the market, there has also been a growing recognition that the increasingly demanding rules and regulations are raising costs and compliance burden on publicly-held companies. In a recent survey of 201 listed companies, 25% of the respondents said that the benefits of staying as a publicly-held company were outweighed by the costs. Compliance with prompt disclosures and listing requirements, potential costs of class-action litigations, and high legal and regulatory standards for corporate governance were requently cited by publicly held companies as sources of concern.
See full Proposals, in pdf format.
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