The Democratic Party of Korea and the government announced on October 8 that they will implement a sustainability disclosure system to address the climate crisis. They emphasized the need for swift action, considering 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 party-government meeting held at the National Assembly, Han Jeong-ae, the party's policy chief, stated, "The disclosure system will require certification, so we will provide a grace period to prevent confusion."
Regarding the grace period, Park Sang-hyuk, the party's policy vice chief, noted, "Legal disclosures carry responsibilities, so we must give companies 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 that the plan is to start with companies exceeding 10 trillion won in 2028, followed by those with 5 trillion won in 2029 and 2 trillion won in 2030. However, he clarified that there have been no discussions about expanding this requirement to all KOSPI-listed companies. He added, "We will begin immediate legal disclosures in 2028 and will pursue amendments to the Capital Markets Act to facilitate this."
Furthermore, he emphasized the importance of supporting companies' ESG capabilities comprehensively to ensure smooth compliance with disclosure requirements. He stated, "Managing climate and energy risks proactively is an essential task for sustainable growth."
* This article has been translated by AI.
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