The sessions are intended to help market participants understand the revised requirements before they take effect, reducing the risk of filing errors that could lead to correction requests and delays in fundraising or listing schedules.
The regulator will hold separate meetings for KOSDAQ-listed companies on Sept. 1, underwriters on Sept 8, companies preparing for an initial public offering (IPO) on Sept 15 and KOSPI-listed firms on Sept 21. Each session will focus on the disclosure issues most relevant to that group.
The briefings follow changes announced by the regulator on July 30 to strengthen disclosure requirements for pharmaceutical and biotech companies, particularly those whose value depends heavily on drugs and technologies still under development.
Under the revised rules, companies preparing to go public will have to provide more detail on the assumptions used to determine their IPO prices. These include the expected market size for a drug, its chances of success in clinical trials, the risk of the drug failing to win regulatory approval, and the expected time and cost of development.
The changes are intended to help investors better assess whether an IPO price is reasonable, especially for drug developers that may not yet generate meaningful profits and are valued largely on future earnings expectations.
Disclosure requirements will also be expanded for listed companies. They will have to provide more information on technology licensing agreements, including the size and structure of the deals, as well as the history of transactions involving drugs under development, making it easier for investors to track the candidate's progress.
AJP Takeaways
• The Financial Supervisory Service will hold four briefings in September 2026 to help pharmaceutical and biotech companies, IPO underwriters and listed firms comply with revised disclosure requirements.
• The sessions will be held for KOSDAQ-listed companies on Sept. 1, IPO underwriters on Sept. 8, companies preparing to go public on Sept. 15 and KOSPI-listed companies on Sept. 21.
• Under disclosure changes announced on July 30, 2026, companies preparing for an IPO must provide more detail on how they determine their offering prices, including expected drug market size, clinical-trial success rates, regulatory approval risks, and expected development time and costs.
• Listed pharmaceutical and biotech companies will also have to disclose more information on technology licensing agreements, including deal size, structure and transaction history involving drugs under development.
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