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|
 Registration
System |
In the primary market, the Korean securities
regulations require an issuer to disclose
any information that could affect IPO prices. |
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A corporation, as given below, must register
with the Financial Supervisory Commission
(FSC) before issuing securities: |
， Corporation
wishing to list its securities on the Stock Market
， Unlisted corporation wishing to make a public
offering of new or outstanding securities
to
more than fifty persons
， Unlisted corporation wishing to merge with
a listed corporation
， Corporation wishing to list its securities on
the KOSDAQ
， Corporation wishing to make a public offering
at their establishment
， Corporation intending to give rights for
incentive stock options to their directors
or employees |
| Registration
Statement |
|
A corporation offering new or outstanding
securities over 1 billion won must file
a registration application with FSC, stating
the proceeds use and public offering method.
Private offerings are exempted. A statement
detailing the business type, performance
and outlook, financial statements, and other information
should accompany the application. |
|
Prior to an IPO, there is a mandatory waiting
period before the registration becomes effective.
This period takes effect as of the filing
date and varies according to the type of issue.
FSC may reduce the waiting period accordingly,
e.g., if the registering company is a public
corporation regulated by the central or a
local government or other similar agency.
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| Disclosure
of Soft Information |
As of April 1999, any corporation wishing
to issue securities may disclose soft information.
Some examples are:
|
， Future business
forecast, e.g., sales and profits
， Future financial forecast, e.g., capital and
cash flows
， Management performance and changes in financial
status or strategic goals |
| Prospectus |
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Once the registration statement becomes
effective, the issuer must publicly distribute
its prospectus.
|
|
The prospectus must contain no misstatements
or omissions and must include the effective
date of the registration statement, public
offering price, offering period, etc. |
|
The prospectus must be made available to the
public at FSC, main and branch offices of
the issuer, and SRO (i.e., KRX or KSDA). |
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