The Korea Exchange(KRX) announced Monday that it will encourage firms to increase English-language public filings from next month.

The South Korean bourse said it will not oblige firms to distribute above-par English filings but will offer relaxed penalties for firms that do make them available.

The KRX will target firms with high market caps, or those whose shares are popular among foreign traders. 

The KRX said English filings number about 100 per year, and stressed the need to increase English language filings to be included in the Morgan Stanley Capital International Index.