Financial authorities plan to tighten rules on public disclosures of corporate governance in a bid to improve transparency for investors and shareholders, the head of the top financial regulator said Thursday.
Choi Jong-ku, chairman of the Financial Services Commission, made the remarks during a meeting with foreign institutional investors.
Currently, listed firms are advised to voluntarily make public disclosures of their corporate governance structure, but Choi indicated that they will be gradually required to do so.
|Financial Services Commission Chairman Choi Jong-ku (Yonhap)|
"We will strengthen the public disclosure system of listed firms' corporate governance structure to help institutional investors easily figure out their corporate governance," Choi said.
Assessments of corporate governance into each listed firm will be improved, Choi said.
A recent report by the Daishin Economic Research Institute showed that about one-fifth of the listed affiliates of the nation's top 10 family-run business conglomerates, or chaebol, have posted public disclosures of their corporate governance.
Of the 88 listed affiliates of the major business groups, only 17 affiliates made a public disclosure of their governance structure as of September, according to the report by the Daishin Economic Research Institute. (Yonhap)