Financial Services Commission Chairman Lee Eok-won said Wednesday that ESG (sustainability) disclosure will be mandatory starting in 2028 for Kospi-listed companies with consolidated total assets of 10 trillion won ($6.53 billion) or more.
Lee made the remarks in his opening address at a party-government meeting on sustainability disclosure institutionalization held at the National Assembly, calling the plan "more aggressive than Japan's approach."
"Proactively managing climate and energy risks is an indispensable task for sustainable growth," he said, adding that the importance of such disclosures as a factor in investment decisions is growing among capital market participants.
He also said domestic and foreign investors had called for expanding the scope of mandatory disclosure and accelerating the transition to statutory reporting. He noted that the National Assembly had expressed support for policies advancing ESG disclosure and carbon neutrality implementation within the broader framework of meeting national greenhouse gas reduction targets.
Lee said the FSC would push ahead with its ESG disclosure roadmap at pace while working with relevant ministries to develop comprehensive support measures to ensure reliable reporting. He asked for the Assembly's cooperation throughout the legislative process.
Han Jeong-ae, policy chief of the Democratic Party of Korea, said in her opening remarks that ESG disclosure can drive management innovation by requiring companies to identify climate and other sustainability-related risks and opportunities and to restructure their decision-making and risk management frameworks accordingly.
"This is also an opportunity to strengthen market and investor confidence in companies, and a foundation for investors to make sound judgments," Han said. "It is the work of building a foundation for sustainable growth in our economy."
bigroot@heraldcorp.com
