The Korea Listed Companies Association said Monday it has launched guidelines for listed firms to offer their corporate information in English and increase accessibility for foreign investors.
The guidelines offer a standardized form for articles of incorporation, including key details about a company, the general purpose of the corporation, the type and number of shares, the board election process and more.
The association has shared the standard form for articles of incorporation since 1980 but has offered examples only in Korean. Listed companies refer to the standardized form, using it as a guideline when they draw up or revise their documents.
The KLCA said it released an English version of the standard form for the first time to provide convenience for local companies amid the growing foreign investments in the Korean market.
“With the release, the association expects listed companies to release their articles of incorporation in English without much difficulty. Having English articles of incorporation could help attract global investments and (comply with) the ‘corporate value-up program’ as it boosts availability for foreign investors,” the KLCA explained.
Since 1980, the KLCA's standard articles of incorporation have been revised 23 times, including the latest reform on the dividend payment procedure in February 2023.
The revision stipulates firms decide on the size of their dividends first, and then set their ex-dividend dates later, enabling new investors to purchase their shares while being aware of how much they can expect in dividends.
The KLCA was founded in 1973 as a nonprofit organization to protect the rights of listed companies and investors for the growth of the local capital market. A total of 839 companies are listed on the benchmark Kospi, while Kosdaq, the secondary bourse, has 1,721 companies listed as of Tuesday.
The KLCA’s push to enhance availability for offshore investors stems from the Korean government’s latest directive to boost the local stock market, also known as the corporate value-up program. The program encourages listed companies to offer more corporate information in English to attract more foreign investments.
The English version of the standard articles of incorporation is available on the KLCA website at www.klca.or.kr.
