Kim So-young, vice chairperson of the Financial Services Commission, noted regarding the Korean-style ESG (environmental, social, governance) disclosure that they are considering plans to announce disclosure standards and a roadmap by the first half of 2025.
Vice Chairperson Kim stated during the 'Sustainability Disclosure Expert Meeting' held on the 30th that, considering the need to enhance the predictability of corporations and the potential for capital inflow in the capital market, it is necessary to promptly present disclosure standards and a roadmap.
Financial authorities and related organizations announced the draft disclosure standards for the Korea Sustainability Standards Board (KSSB) in April and have been collecting opinions from stakeholders, including corporations and economic groups. However, the timing for implementation has only been determined as 'after 2026 for climate-related disclosures.'
The cautious stance of major countries regarding the introduction of sustainability standards has a significant impact. Even the European Union (EU), which is evaluated as the fastest in this regard, has completed the legislation on climate-related disclosures in only 12 out of its 27 member countries. In the United States, related lawsuits have been filed, and with the upcoming inauguration of the Donald Trump administration, the introduction of climate-related disclosures remains uncertain.
However, officials from related institutions and sustainability standards experts attending the meeting all agreed that it is clear this is an irreversible trend. This is because sustainability disclosure has become an essential requirement not only for investors but also for global corporations.
The Korean Accounting Standards Board plans to prepare disclosure guidelines to ensure the smooth implementation of sustainability disclosure standards and will conduct both online and offline training for corporations. The board also publicized translations of industry-specific guidelines regarding the implementation of IFRS S2, which had been highly requested by corporations. The IFRS S2 industry-specific guidelines present methods for identifying, measuring, and disclosing industry-specific information regarding climate-related risks and opportunities.
The Korea Exchange plans to continue support activities for corporations preparing sustainability disclosures in collaboration with the Korean Accounting Standards Board. The exchange also stated that, along with a consortium of ESG evaluation agencies, an analysis of the compliance status regarding the procedures and standards of ESG evaluation agencies found that all three affiliated evaluation agencies are mostly compliant with the items. One agency that did not comply with a single item plans to improve and operate the corporate feedback process starting in September 2025.