NEWSLETTER-2017

215 CAPITAL MARKETS LAW Amendments regarding the Scope With the amendment to Article 2 of the Communiqué, the issuers whose transaction turn is temporarily closed, and whose shares are traded at platforms or markets determined by the stock exchange due to gaining the status of a public company, and related parties, shall be subject to the provisions of this Communiqué after the prospec- tus or issuance certificate is approved by the Capital Markets Board (“Board”). The second paragraph of the same article regulates that the issu- ers whose shares are not traded at the exchange, and who offer capital market instruments other than shares to the public in domestic mar- kets, shall be subject to the articles of the Communiqué from the date the prospectus, is approved by the Board until the redemption date of the relevant capital market instrument. Moreover, as distinct from the previous regulation, the issuers who do not have capital market instruments in circulation are made subject to the provisions of such Communiqué during the validity period of the approved prospectus. The Communiqué lastly stipulates that the second section of this Communiqué, entitled Principles of Insider Information, and the third section of this Communiqué, entitled Principles on Ongoing Informa- tion, shall not be applicable to issuers whose shares are not traded at the stock exchange, and who issue capital markets instruments in domestic markets without a public offering, the partnerships whose shares are traded at the qualified investor transaction market, and to fund users in the issuance of lease certificates actualized in domestic markets. Therefore, the new regulation extends the definition of is- suers who will not be subject to sections two and three of the Com- muniqué. The obligations of such issuers and fund users relating to the other sections of this Communiqué shall be valid from the date of approval by the Board of the prospectus or issuance certificate until the redemption date of such capital market instrument.