The Korea Stock Exchange (KSE) has decided to ease disclosure requirements for foreigners to induce more foreign corporations to list their stocks on the local exchange.
The KSE has also decided to accept foreign companies' indigenous financial statements reported according to the accounting standards of their own country.
Under the measures, foreign companies will be allowed to disclose only 12 items of information such as capital increases or stake investments in other corporations which will directly affect the company's financial conditions.
Domestic companies are now forced to release all information in 38 situations that might bear on an investment decision, as required by the Securities and Exchange Law and the KSE.
The KSE will permit foreign companies to submit financial statements reported according to their own accounting standards in a bid to reduce the unnecessary burden of modifying their financial reports.
However, to protect domestic investors, the KSE will require foreign companies to reveal information reported back to their governments, and any change in or revision of securities-related systems in their own countries, which would greatly influence the management of relevant companies.
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