South Korea to Mandate ESG Disclosures for Major Companies from 2028

South Korea is set to mandate environmental, social, and governance (ESG) disclosures for its largest listed companies, with the requirement applying to KOSPI-listed firms whose consolidated assets surpass 10 trillion won (approximately $7.3 billion) from 2028.

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Starting in 2028, ESG disclosure will be mandatory for KOSPI-listed companies with consolidated assets exceeding 10 trillion won.

Financial Services Commission Chairman Lee Bok-hyun announced the plan, describing it as a more proactive measure compared to Japan's current approach. He emphasized that managing climate and energy risks is crucial for sustainable growth and increasingly important for investors making decisions.

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This is a more proactive measure than Japan's.

The roadmap, initially proposed in February, has undergone revisions following extensive consultations. Institutional investors, both domestic and international, urged for a broader scope of disclosure and an earlier transition to legally binding requirements. The revised plan aims to encourage companies to actively implement these disclosures, aligning with national priorities for sustainable development.

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Proactively managing climate and energy risks is an indispensable task for sustainable growth and is becoming increasingly important for capital market participants as a factor in investment decisions.