South Korea's financial regulator said Thursday it will continue its efforts to improve investors' credibility in the country's capital market and promote financial stability.
The Financial Services Commission (FSC) said it will come up with a measure to improve the treasury stock management of listed companies to protect the interests of ordinary stockholders amid criticism the companies use the treasury stocks to the benefit of major shareholders.
Kim So-young, vice chairman of the FSC, said the FSC will announce measures to better respond to evolving stock-related crimes in the third quarter and sternly respond to market disturbances to restore investors' trust.
The FSC will also continue its efforts to successfully implement market improvement measures meant to protect retail investors, including prior notice of insider trading, mandatory tender offers, and strengthening punishment against unfair trading practices, Kim said.
In June, the National Assembly passed a bill aimed at imposing a stronger fine on unfair trading, which is set to take effect next year.
Kim said financial authorities have also been working to provide foreign investors better access to and information about South Korea's capital market, allowing foreign investors to buy the country's stocks and bonds with prior registration starting December, and adopting an English disclosure system from next year.
KOSPI-listed companies with assets of 10 trillion won (US$7.5 billion) or more will be required to issue key regulatory filings in English from next year, and the mandate will be expanded to KOSPI-listed firms with assets of 2 trillion won or more from 2026.
Source: Yonhap News Agency