The Democratic Party of Korea and the government announced on July 8 that they will implement a sustainability disclosure system to address the climate crisis, emphasizing the need for swift action in light of international examples to enhance national competitiveness. Starting in 2028, companies listed on the KOSPI with consolidated assets exceeding 10 trillion won will be required to disclose ESG (Environmental, Social, and Governance) information, with plans to gradually expand this requirement.
During a government-party meeting held at the National Assembly, Han Jeong-ae, the party's policy chief, stated, "The disclosure system will require certification, so a grace period will be provided to avoid confusion."
Regarding the grace period, Park Sang-hyuk, the party's policy vice chief, noted, "Legal disclosures carry responsibilities, so companies should be given ample time during the initial phase. The grace period is designed for unintentional errors, while intentional misconduct will be subject to accountability."
Lee Ok-won, Chairman of the Financial Services Commission, explained, "We will start with companies exceeding 10 trillion won in 2028, then expand to those with 5 trillion won in 2029 and 2 trillion won in 2030." However, he clarified that there have been no discussions about extending this requirement to all KOSPI-listed companies. He added, "We will begin immediate legal disclosures in 2028 and plan to pursue amendments to the Capital Markets Act to facilitate this."
Furthermore, he emphasized the need to support companies' ESG capabilities comprehensively to ensure smooth compliance with disclosures, stating, "We aim to create a virtuous cycle where companies can grow through the institutionalization of ESG disclosures." He also highlighted that proactively managing climate and energy risks is an essential task for sustainable growth.
* This article has been translated by AI.
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