XBRL in Korea Set to Expand

XBRL in Korea Set to Expand

By Prathamesh 2 June, 2023
news

South Korean authorities are set to tackle the country’s valuation gap with a comprehensive set of reforms that aim to enhance the visibility and attractiveness of Korea’s public markets.

The new rules, announced in March and set to be introduced in stages over the next 3 years, involve new requirements to include the notes to the accounts in XBRL format, digital reporting in XBRL for financial services firms, and the inclusion of financial statements from large unlisted companies in XBRL.The already popular Open DART system (3 million users and counting) will be further enhanced, including new mechanisms to permit companies and retail investors to compare the performance of Korean companies with international peers.

At a conference in Seoul yesterday, a joined up, collaborative effort was on display. Leaders from the Financial Supervisory Service (FSS), the Korean Institute of CPAs (KICPA), the Korean Accounting Institute (KAI), the Korea Listed Companies Association, the Korea Federation of Banks, representatives of data providers and fund managers, together with a substantial number of external reporting professionals from many of Korea’s leading companies gathered to hear about the new plans as well as relevant international experience.

In his opening speech, FSS Governor Lee Bok-hyun emphasised the importance of informing international investors through more comprehensive digital reporting to help tackle the “Korea Discount”, a well-recognised problem that values South Korean firms at a persistently lower level to global peers. Ensuring that more information is available, and available in the English language is part of the multi-faceted reform.

To find out more details please visit : https://www.xbrl.org/