• SK FSS updated on violations, precautions re equity disclosure by listed companies.

Violations/Precautions

• The acquisition of convertible bonds (CBs), bonds with warrants, or exchangeable bonds equivalent to 5% or more of the total number of issued stocks shall be reported.
• The stock acquisition or sales of entire stocks by mutually specially-related persons constitute the duty to report stocks held in bulk, even if such change is less than 1%.
• Even if each reporting party or member individually reports stocks held in bulk, all individual shareholdings of other specially-related members must be summed and reported.
• Major shareholders and executives of listed companies should verify whether they have to fulfill the duties to report both bulk holdings and ownership status, as well as relevant reporting deadlines, when there is a change in stocks held by them.
• Should also pay heed to the reasons for exemption, as they may have to report the ownership status, even though they are exempt from the duty to report bulk holdings.
• In case of the acquisition of stocks allocated according to the number of stocks held by shareholders, stock split/merger, takeover, capital reduction, exercise of conversion rights.
• A newly appointed executive of a listed company shall report the ownership status, where he or she owns even one share of the company's stock.