FilingsTodayReading a Korean annual business report
Updated 2026-10-31
The annual business report (사업보고서) is the longest and most complete filing a Korean listed company makes. It combines a business description, audited financial statements and a large amount of governance data. For a December year-end company it is due within 90 days, so most arrive in mid to late March. The structure is fixed by the FSS, so once you know where to look, every company's report is easy to navigate, even in Korean.
This guide covers the sections that foreign readers most often want, many of which feed the rankings on this site.
Where things are
| Section (Korean heading) | What you find |
|---|---|
| I. 회사의 개요 | History, share capital, number of shares and voting rights |
| II. 사업의 내용 | Products, markets, order backlog, raw materials, R&D |
| III. 재무에 관한 사항 | Summary and full financial statements, notes, and the dividend table |
| V. 회계감사인의 감사의견 등 | Auditor, audit opinion and audit fees |
| VII. 주주에 관한 사항 | Largest shareholder, related parties and 5% holders |
| VIII. 임원 및 직원 등에 관한 사항 | Directors, employees and pay |
Employees and average pay
The employee table (직원 등 현황) breaks staff down by business division and gender, separating permanent staff from fixed-term staff, and gives the average length of service, total pay and average pay per employee (1인평균 급여액). Average pay is calculated by the company from total pay and the average headcount, and methods vary slightly, so treat small differences between companies with care. The salary ranking uses this figure.
A high average can reflect the mix of staff. A holding company with a small team of senior managers will show much higher average pay than a manufacturer with thousands of factory workers.
Director pay
Shareholders approve a maximum total for director pay at the annual meeting. The report compares the approved limit with what was actually paid, split into inside directors, outside directors and audit committee members, with a per-person average.
The report must also show individual pay for each director or officer paid ₩500M or more in the year, with an explanation of how it was calculated. In addition, it lists the five highest-paid individuals whose pay was ₩500M or more, even if they are not directors. This second list often includes star researchers, traders or salespeople, and occasionally a large severance payment to a retiring executive.
Dividends
The dividend table (주요배당지표) gives three years of data:
- Dividend per share (주당 현금배당금), by share class.
- Payout ratio (현금배당성향): total cash dividends divided by net income, usually consolidated net income attributable to owners of the parent.
- Dividend yield (현금배당수익률): dividend per share divided by an average market price over a set period before the record date, not the current price.
This site uses these figures for dividend yield and dividend growth rankings. The report also states the company's dividend policy and, since recent reforms, how the record date is set (see Korean dividends).
Worked example
A hypothetical company reports these figures:
- Total employee pay ₩60B, average headcount 1,000: average pay ₩60M.
- Net income attributable to owners ₩40B, 10,000,000 shares: earnings per share ₩4,000.
- Dividend per share ₩1,000: total dividends ₩10B, payout ratio 25%.
- Average share price used for yield ₩40,000: dividend yield 2.5%.
If the share price later rises to ₩50,000, the yield shown in the report stays at 2.5%, while the yield on today's price would be 2.0%. Always check which price a yield is based on.
Largest shareholder and related parties
Korean reports name the largest shareholder (최대주주) and list its related parties (특수관계인): family members, affiliated companies, foundations and executives. Their combined stake is the real measure of control. Changes during the year are listed with dates and reasons. The section also shows 5% holders, often including the National Pension Service, and the number of minority shareholders. For changes between annual reports, see major holder filings and insider filings.
Audit opinion
The audit report is attached to the annual report and summarised in section V. Look for the opinion (적정 means unqualified), any emphasis paragraph on going concern, the key audit matters and the auditor's name. A change of auditor is not unusual in Korea, because many companies must rotate auditors under the periodic designation system. See the audit opinion guide.
Other useful data
- Order backlog in section II, useful alongside supply contract filings.
- Related-party transactions with the largest shareholder and affiliates.
- Outstanding convertible bonds and stock options.
- Pending lawsuits and sanctions.
Comparison with the US
The annual business report combines what a US company spreads across the 10-K and the proxy statement (DEF 14A). The US proxy shows pay for named executive officers, usually five, whatever their pay level. Korea instead uses a ₩500M threshold, so some companies show no individual pay at all. Korean reports also give average employee pay directly, which US filings do not, although US companies disclose a CEO pay ratio.