How are unlisted shares held by a fund valued?

Because unlisted shares have no reliable market price, they are measured at fair value, and KOFIA guidelines allow reference to the 'Fair Value Measurement Guidelines for Investments in Unlisted Shares' prepared jointly by the Financial Services Commission, the Financial Supervisory Service and the Korea Accounting Standards Board in 2020.

The valuation should consider the latest financial statements, changes in capital, business plans and recent prices in transactions with third parties, among other things, and should promptly reflect events such as a merger or IPO subscription, rehabilitation proceedings or capital impairment. Non-marketable assets held by general private funds are in principle valued periodically at least once a year after the initial investment, and also whenever a significant event occurs.