Embed Size (px)
Citation preview
Electronic Filing and Disclosure in Korea
Electronic Filing and Disclosure in Korea
DART: Data Analysis, Retrieval and TransferDART: Data Analysis, Retrieval and Transfer
Financial Supervisory ServiceHanoi, March 2007
Financial Supervisory ServiceHanoi, March 2007
AgendaAgendaI. I.
II. II.
IV. IV.
III. III.
VI. VI.
V. V.
VII. VII.
Before DARTBefore DART
DART Development HistoryDART Development History
XBRL System DevelopementXBRL System Developement
What is DART SystemWhat is DART System
2007 Roadmap2007 Roadmap
English DARTEnglish DART
ConclusionConclusion
Companies: Visit FSS to submit disclosuresCompanies: Visit FSS to submit disclosures
Limited access to disclosure data
Growing volume of disclosure documents− Rapid growth of capital market − Strengthened disclosure regulations
Growing volume of disclosure documents− Rapid growth of capital market − Strengthened disclosure regulations
Companies &investors Investors: Visit FSS to view disclosuresInvestors: Visit FSS to view disclosures
Insufficient resources for implementation
I. Before DARTI. Before DART
DisclosureDisclosureDocumentsDocuments
MaintainDocuments
MaintainDocuments Visit / ViewVisit / View
Securities Regulator
Companies FSS Investors
Submit Disclosures
Submit Disclosures
II. DART Development HistoryII. DART Development History
Mar. 1999 Launched DART (online and offline filings)Mar. 1999 Launched DART (online and offline filings)
Sep. 2006 Started XBRL voluntary filing programSep. 2006 Started XBRL voluntary filing program
Nov. 2006 “Leading Brands of the Korean Gov.”Nov. 2006 “Leading Brands of the Korean Gov.”
Jan. 2001 Full on-line DART (No offline filings)Jan. 2001 Full on-line DART (No offline filings)
May. 1998 Established a comprehensive planMay. 1998 Established a comprehensive plan
Aug. 1998 Developed DART SystemAug. 1998 Developed DART System
Feb. 2007 Launched English DARTFeb. 2007 Launched English DART
CompaniesCompanies
“One-Stop Filing”“One-Stop Filing”
Korea Exchange
KICPA
Transfer
Submission of disclosure documents Filing
SystemFiling
System
PublicDisclosure
System
PublicDisclosure
System
FSS Inspectors
FSS Inspectors
Review &Analysis System
Review &Analysis System
DR Center(Anyang)
DR Center(Anyang)
III. What is DART SystemIII. What is DART System
1. Overall Process1. Overall Process
Companies/persons subject to disclosure: 35,000Companies/persons subject to disclosure: 35,000
Disclosure documents: 510 typesDisclosure documents: 510 types
- Listed companies: 1,600 - Companies subject to external audit: 13,000- Individual shareholders: 12,000
- Listed companies: 1,600 - Companies subject to external audit: 13,000- Individual shareholders: 12,000
IT based filling and disclosure
Improved capital market
Not restricted by time or space availability Not restricted by time or space availability
Real-time supervision of companiesReal-time supervision of companies
Always available onlineAlways available online
Open and transparent managementOpen and transparent managementEffective use of resourcesEffective use of resources
2. Accessibility2. Accessibility
III. What is DART SystemIII. What is DART System
One-stop online filing
Reduced disclosure burden − Visit to FSS for paper filing no longer necessary− Save time and cost
Reduced disclosure burden − Visit to FSS for paper filing no longer necessary− Save time and cost
73,000 in 2001 → 116,000 in 200673,000 in 2001 → 116,000 in 2006
Result: Reduced Burden of FirmsResult: Reduced Burden of Firms
Growing number of required filings
Easier maintenance of documents
Disclosures available to public on a real-time basisDisclosures available to public on a real-time basis
230330
370 390 40073K98K 109K 116K 121K
Annual filings
Daily average filings
’01 ’02 ’03 ’04 ’05
Market growthMarket growth
1.4 mil. documents filed from 1999 to 2006− Will load about 38 8-ton trucks
1.4 mil. documents filed from 1999 to 2006− Will load about 38 8-ton trucks
’06
116K
390
Increasing number of document viewings
26 mil. in 2001 → 305 mil. in 200626 mil. in 2001 → 305 mil. in 2006
Average number of users per day: 43,000Average number of viewings per day: over 1 mil.Average number of users per day: 43,000Average number of viewings per day: over 1 mil.
Result: Increased Document ViewingsResult: Increased Document Viewings
Viewings per year
Average daily viewings
70K
210K
360K
550K
720K
26M
61M
98M
148M
194M
’01 ’02 ’03 ’04 ’05
Over tenfoldincrease
Over tenfoldincrease
1120K
305M
’06
※ Peak Time : 1.2 mil. viewings per day※ Peak Time : 1.2 mil. viewings per day
Search by− Company name, type of document, Industry,
Securities ID, etc.
Search by− Company name, type of document, Industry,
Securities ID, etc.
3. Easy and Powerful Search3. Easy and Powerful Search
Useful and powerful searching system
III. What is DART SystemIII. What is DART System
Information warehouse for foreign investors− companies : 15.000− Disclosure forms : 510종− documents : 140 mil. (A4-sized pages can
cover 2.5 round of the earth)
Information warehouse for foreign investors− companies : 15.000− Disclosure forms : 510종− documents : 140 mil. (A4-sized pages can
cover 2.5 round of the earth)
Result : Quality InformationResult : Quality Information
Dream site for researchers
Automated assignment of staff for review; automated review proceduresAutomated assignment of staff for review; automated review procedures
Information Management System for Equity Holdings and Company Information SystemInformation Management System for Equity Holdings and Company Information System
Securities Investigation Support System, etcSecurities Investigation Support System, etc
DART SystemDART System Financial SupervisoryInformation SystemsFinancial SupervisoryInformation Systems
Real-time transfer
Real-time transfer
4. Enhanced Supervision4. Enhanced Supervision
Automated review & analysis process
Disclosures shared with Financial Supervisory Information Systems
III. What is DART System?III. What is DART System?
Enhanced market discipline
Better informed supervisors- Strengthen supervision of capital market
by automating work process
Better informed supervisors- Strengthen supervision of capital market
by automating work process
Better informed investors- Anybody can search the company information
anywhere anytime- Improve Market transpanrency by supervising
on a real-time basis
Better informed investors- Anybody can search the company information
anywhere anytime- Improve Market transpanrency by supervising
on a real-time basis
Enabling environment for better governance and transparencyEnabling environment for better governance and transparency
Result: Market transparencyResult: Market transparency
IV. XBRL System DevelopmentIV. XBRL System Development
Automated development of a financial database
What is XBRL?
About XBRLAbout XBRL
Benefits
Before, developing a financial database from financial statements took more than 2 months− With XBRL, automated development of a financial
database
Before, developing a financial database from financial statements took more than 2 months− With XBRL, automated development of a financial
database
Automation, cost and time savings, reliable and accurate data handling, improved analysis, useful information for decision-making
Automation, cost and time savings, reliable and accurate data handling, improved analysis, useful information for decision-making
XBRL: eXtensible Business Reporting Language
Global standard language for financial statements
XBRL: eXtensible Business Reporting Language
Global standard language for financial statements
IV. XBRL System DevelopmentIV. XBRL System Development
SubmitXBRL
financialstatements
XBRLfinancial
statements
Financial DBFinancial DB
TransferTransferDiscloseDisclose
XBRL System ArchitectureXBRL System Architecture
Verify & Build DBVerify & Build DB Use DBUse DB
IV. XBRL System Development IV. XBRL System Development
Automated, Faster Development of a Financial DatabaseAutomated, Faster Development of a Financial Database
KRW 4 bil. KRW 4 bil.
<Total Assets> 4000000000 </Total Assets><Total Assets> 4000000000 </Total Assets>
XBRLFinancial
Statements
XBRLFinancial
Statements
Financial reports
Financial reports
V. English DARTV. English DART
Launched an English DARTLaunched an English DART
Linking DART Searchto Portal Sites
Renewal as New DART
Full operation of XBRL system
Build a database of financial statements automatically from XBRL documentsBuild a database of financial statements automatically from XBRL documentsSecure and accurate review and analysis of disclosuresSecure and accurate review and analysis of disclosures
DART to offer links of DART Search to portals and company IR sites for more disclosure informationDART to offer links of DART Search to portals and company IR sites for more disclosure information
VI. 2007 RoadmapVI. 2007 Roadmap
Upgrade DART system using the newest IT technologyUpgrade DART system using the newest IT technology
Integrated Corporate Disclosure NetworkIntegrated Corporate Disclosure Network
Change to XML/XBRL based document systemChange to XML/XBRL based document system
Future Challenge
Current and future DART
Key to the capital market’s transparency- Full, timely, and fair disclosureThe best key is the electronic public disclosure system
Key to the capital market’s transparency- Full, timely, and fair disclosureThe best key is the electronic public disclosure system
VII. Conclusion: Ten Year of DARTVII. Conclusion: Ten Year of DART
Successful Marriage of IT and Securities SupervisionSuccessful Marriage of IT and Securities Supervision
Investor’s reasonable decision based on disclosure dataInvestor’s reasonable decision based on disclosure data
Awareness of CEO and senior management about importance of disclosureAwareness of CEO and senior management about importance of disclosure
Lessons Learned
Repository of Korea’s corporate filingsRepository of Korea’s corporate filingsCore infrastructure for capital marketCore infrastructure for capital market
Takeoff to global leading brand (future)Takeoff to global leading brand (future)
Thank You
Yoon Young [email protected]
Financial Supervisory Service
Yoon Young [email protected]
Financial Supervisory Service
