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Jul 08, 2026
- ESG Disclosure to be Required from 2028 for KOSPI-listed Companies with KRW10 Trillion or More in Total Consolidated Assets
- The Financial Services Commission announced that the government and the ruling Democratic Party of Korea held a consultative meeting and announced the final version of the roadmap for sustainability (ESG) disclosure on July 8. Background The FSC has been continuously working to establish rules on sustainability disclosure as a key policy agenda of this administration and has sought opinions from various stakeholders. Over the months, opinions and suggestions have been collected from institutional investors, non-governmental organizations, professional groups, industry groups, and businesses. In this regard, institutional investors asked for an expansion in the scope of disclosure entities considering the usefulness of sustainability disclosure data for investment purposes. In the meantime, there have been various proposals for revising the Financial Investment Services and Capital Markets Act (FSCMA) introduced at the National Assembly, which intend to require sustainability disclosure as part of the statutory disclosure of corporate business reports. In addition, uncertainty surrounding energy prices has risen recently amid the war in the Middle East. In this regard, effectively managing climate and energy risks has become an essential policy strategy to ensure sustainable growth for both the country and individual businesses. Against this backdrop, the government and the ruling party have agreed to upgrade the previously announced roadmap for sustainability disclosure to make the schedule more progressive and to operate a comprehensive support system to ensure the provision of adequate and effective assistance for businesses. Roadmap for Sustainability Disclosure a) Disclosure timetable and scope of entities The scope of disclosure entities will be expanded in stages to move up the previously announced timetable and make major KOSPI-listed companies subject to the sustainability disclosure duty. From 2028 (FY2027), KOSPI-listed companies with total consolidated as
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Oct 01, 2025
- Rule Change on ESG Rating and Disclosure to Enhance Financial Risk Management Related to Industrial Accidents
- The Financial Services Commission approved a revision to the Korea Exchange (KRX) disclosure rules on October 1 requiring listed companies to timely disclose information regarding the occurrence of industrial accidents to strengthen the management of financial risks associated with industrial accidents. The FSC also introduced a rule change proposal intended to strengthen the annual and semi-annual disclosure duties regarding the occurrence of industrial accidents. In addition, ESG rating institutions have made changes to their ESG rating guidance incorporating the occurrence of industrial accidents in the evaluation of corporate ESG practices. First, the revised ESG rating guidance incorporating industrial accidents into the evaluation of corporate ESG practices will take effect from October 1. Prior to this, socially controversial issues including the occurrence of industrial accidents were considered for evaluation by ESG rating institutions on a voluntary and non-binding basis. However, with the growing impact of industrial accidents on corporate valuations, it has become necessary to more closely manage this issue. As such, ESG rating institutions have made an update to their ESG rating guidance incorporating major controversial issues, such as industrial accidents, into the evaluation of corporate ESG practices, effective from October 1. Along this line, ESG rating institutions will also need to make efforts to enhance the quality and capacity in their rating services to more systematically reflect financial risks associated with industrial accidents and boost confidence on their ESG rating services. The KRX will regularly make comparison and assessment on ESG rating institutions compliance with the updated guidance. Second, listed companies will be subject to a timely disclosure of information regarding the occurrence of industrial accidents. Currently, listed companies are required to file KRX disclosures only when accruing a significant loss in properties o
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Apr 22, 2024
- Taskforce on ESG Finance Holds Meeting and Discusses Key Details of ESG Disclosure Standards
- The Financial Services Commission held the 4th taskforce meeting on ESG (environmental, social and governance) finance with related ministries, industry groups, investors, and experts on April 22 to have discussions on details of an open draft on domestic ESG disclosure standards. FSC Vice Chairman Kim Soyoung presided over the meeting and outlined basic principles and key details of the draft standards. A Summary of Vice Chairmans Remarks First, this open draft on domestic ESG disclosure standards is consistent with global standards as it amply takes into account cases from overseas. In this regard, the draft standards have been formulated to ensure interoperability with the ESG disclosure standards of other major countries to minimize the burden of redundant disclosure duties for domestic businesses. In addition, the draft standards will mandate climate-related disclosures first, while keeping the disclosure of information on other non-climate-related ESG elements on a voluntary basis. Second, the draft standards have been prepared to provide quality information to investors. Instead of simply requiring businesses to list up relevant data on climate risks and opportunities, the draft standards will actually promote behavioral change from businesses through a more systematic provision of information disclosures based on important categories, such as governance structure, strategy, risk management process, and so on. Third, the draft standards also take into account the needs of enterprises and ensure that there is no excessive burden placed on them. Considering domestic firms capabilities and level of preparedness, authorities will provide detailed guidelines and allow companies to disclose qualitative informationinstead of quantitative datafor certain types of indicators prone to a large degree of subjectivity in their measurement. This open draft on ESG disclosure standards also takes into consideration the need for our economy to address some of the newly emergi
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Feb 14, 2024
- Authorities Meet to Discuss ESG Disclosure Standards
- The Financial Services Commission held a meeting with officials from industry groups, investors, related organizations and private sector experts on February 14 to have a discussion on the preparation of domestic disclosure standards for environmental, social and governance (ESG) management. FSC Vice Chairman Kim Soyoung presided over the meeting and delivered opening remarks, outlining trends in global disclosure standards and direction for domestic ESG disclosure standards. The following is a summary of Vice Chairman Kims remarks. Global interest on ESG and sustainable growth has led to the strengthening of ESG policy and regulations in global capital markets. To facilitate domestic firms to more effectively respond to this, the government has been making efforts to support the sustainable growth of our economy and businesses. As a part of this, the FSC had introduced a general direction for pursuing ESG disclosure standards at a taskforce meeting held in October last year. Considering trends in major countries, authorities had agreed to adopt ESG disclosure standards from after 2026 and agreed to consider an exchange filing requirement and an application of a minimum level of sanctions during an early stage. Moreover, authorities had agreed on considering the adoption of climate-related disclosure standards first as there is an international consensus already established on this. ESG disclosure standards are aimed at making sure that information about corporate sustainability practices can be disseminated to investors in a more systematic way, thereby helping to resolve the problem of information asymmetry between companies and investors. Many firms have been filing sustainability reports on a voluntary basis, but the lack of common standards made them difficult for comparison. Therefore, the government has been working with related organizations, such as Korea Accounting Institute, in preparing ESG disclosure standards to be adopted by domestic stock companies.
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Oct 16, 2023
- Taskforce on ESG Finance Holds Meeting to Discuss Ways to Introduce ESG Disclosure System
- The Financial Services Commission held the third meeting of the taskforce on promoting ESG finance on October 16. Set up in February this year, the taskforce on ESG finance consists of representatives from businesses, investors, academia, experts and relevant institutions, and is aimed at exploring various policy tasks on the issues encompassing ESG disclosure, assessment and investment. At todays taskforce meeting, the authorities discussed the roadmap for introducing an ESG disclosure system in domestic market. In opening remarks, FSC Vice Chairman Kim So-young spoke about the significance and the underlying principle of introducing an ESG disclosure system in Korea. The following is a summary of Vice Chairman Kims remarks. First, introducing an ESG disclosure system in domestic market is important as this will help to improve domestic firms ability to adapt to the strengthened ESG regulatory environment overseas. As domestic firms are both directly and indirectly affected by global value chains, it is necessary to lay a regulatory foundation to help them adjust to the strengthening of relevant regulations in major overseas markets. Second, introducing an ESG disclosure system can make contributions for a sustainable growth of our economy and industries. This will also help our economy make a transition from the one centered on quantitative growth to the one driven by qualitative growth. Third, introducing an ESG disclosure system will induce domestic firms to seek more technological innovation in line with the shifting global paradigm toward digital transformation and low carbon society. In this regard, establishing rules on ESG disclosure will take into account the standards set forth by major economies and international organizations and give ample considerations for particular characteristics of domestic market and businesses. Second, applying the ESG disclosure rules on businesses will take place in phases, starting with large listed companies first and then
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Dec 20, 2021
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Feb 08, 2021
