The financial authorities will support corporations' green transition (GX) by finalizing ESG disclosure standards and announcing a disclosure system roadmap as part of a grand shift to productive finance. Lee Eog-weon, Chairperson of the Financial Services Commission, held the fourth meeting on the grand shift to productive finance at the Korea Chamber of Commerce and Industry on the 25th to discuss key tasks.
In opening remarks, the chairperson said, "We are pursuing a Korea-style green transition (K-GX) to achieve carbon neutrality," and emphasized, "ESG is now a core task of productive finance." Noting that the ESG field is unlikely to yield short-term results, the chairperson said the public sector will lead in supplying venture capital and building infrastructure.
That day, the Financial Services Commission presented institutionalizing ESG disclosures and promoting climate finance as priority tasks to support the green transition. Under the ESG disclosure roadmap, mandatory disclosures will begin in stages in 2028 (fiscal year 2027), starting with KOSPI-listed companies with 30 trillion won or more in consolidation assets. The timeline reflects a comprehensive review of cases in major countries such as Japan and the timing of overseas disclosure obligations for large domestic corporations.
Disclosure of "Scope 3" greenhouse gas emissions, meaning emissions across corporations' entire value chains, will apply starting in 2031 in light of the time needed to build infrastructure. However, value chains that are not in small-scale high-carbon-emitting industries will be exempted from disclosure to ease the burden on corporations.
In the initial phase of the system, Safe Harbor will be allowed for disclosures that use forward-looking information to reduce corporations' concerns about penalties for violations. To ensure information reliability, the disclosure deadline for greenhouse gas emissions will be allowed until mid-Aug., aligned with the half-year settlement of account.
Financial support to respond to the climate crisis will also be greatly expanded. The Financial Services Commission (FSC) will supply a total of 790 trillion won in climate finance by 2035 to achieve the 2035 Nationally Determined Contribution (NDC) for greenhouse gas reduction. Of that, more than 50% will go to nonmetropolitan regions and more than 70% will be focused on small and medium-sized and mid-sized corporations to strengthen carbon competitiveness across the industrial ecosystem.
In particular, a "Korea-style transition finance" will be introduced to help high-carbon industries such as steel and chemicals make a soft landing into low-carbon structures. To that end, in cooperation with related ministries such as the Ministry of Environment and the Ministry of Trade, Industry and Energy, "transition finance guidelines" have been prepared.
Data infrastructure will also be built to enhance the financial sector's response expertise. Centered on the Korea Credit Information Services, a "climate finance web portal" will be created to assist with determinations under the green taxonomy (K-Taxonomy), and a "financed emissions platform" will be provided to manage the carbon emitted indirectly by financial institutions, supporting objective carbon performance management.
Based on the discussions that day, the Financial Services Commission (FSC) will form and operate a working-level group with relevant institutions so that ESG disclosures can take root on the ground and the supply of climate finance can be promoted. The FSC will also continue communication and supplementation of necessary matters to support corporations.