Lee blasts listed firms for avoiding investor relations events

Only 33% of Kospi, 26% of Kosdaq firms plan to hold IR sessions

Korea Exchange reviewing mandatory annual IR requirement

English-language IR materials for foreign investors also urged

President Lee Jae Myung takes part in a discussion at a capital markets policy forum held at the Korea Exchange promotional hall in Yeouido, Seoul, on Friday. [Yonhap]
President Lee Jae Myung takes part in a discussion at a capital markets policy forum held at the Korea Exchange promotional hall in Yeouido, Seoul, on Friday. [Yonhap]

President Lee Jae Myung sharply criticized listed companies that avoid investor relations events, questioning whether such firms deserve to remain on the market.

Lee's remarks amounted to a call for systemic reform targeting companies that shun communication with investors. In response, Korea Exchange said it is reviewing a plan to revise its regulations to require all listed companies to hold at least one IR session per year for as long as they remain listed.

Lee made the comments Friday at a capital markets policy forum in Yeouido, after being told that some Kosdaq-listed companies had turned away securities firms seeking corporate visits and shown little interest in holding IR sessions.

"If you put your company's shares out as a product, it is the essence of the market to work toward getting a fair price for them," Lee said. "If someone says they want to learn more about your company and you tell them not to come, don't you lose the right to be in the market?"

On the broader problem of low IR participation among listed firms, Lee said he questioned whether such companies deserved to stay listed and added that regulatory improvements appeared necessary.

In response, Korea Exchange Chairman Jeong Eun-bo said the exchange currently requires companies to hold IR sessions for a set number of years after listing. "We are reviewing a change that would require at least one IR session per year for as long as a company remains listed," Jeong said.

When Lee asked when the change would take effect, Jeong said the exchange was actively reviewing the matter. Lee said the process should move quickly and, if needed, be formalized through regulation. "There is no need to go through the National Assembly for legislation — can't the exchange just update its own operating rules?" Lee said. Jeong said the requirement would be incorporated into the regulations governing listing maintenance conditions.

Lee also raised the problem of insufficient English-language IR materials for foreign investors. "Foreign investors who want to put money into Korean shares say there are no materials in English," Lee said. "What is so difficult about preparing materials in English or other major foreign languages and posting them online?"

Jeong said English-language disclosure is already mandatory for Kospi-listed companies and that the exchange plans to extend the requirement to the Kosdaq market.

Lee said efforts to restore market confidence tend to focus too heavily on sweeping policy changes or legislation. "If you pile up many small but immediately effective measures, it can have the same impact as changing a major rule," he said.


th5@heraldcorp.com