South Korea’s ESG Disclosure Roadmap: What Companies Need to Know Now
The ESG Shift Is Real
South Korea is entering a new era of corporate sustainability. What was once encouraged is quickly becoming expected—and soon, mandated. The Financial Services Commission (FSC) and the Korea Accounting Standards Board (KASB) have laid out a roadmap to bring ESG disclosures in line with international norms, marking a major transformation in how companies operate and report.
FSC’s Phased Roadmap: Who must report, and when?
The FSC’s plan introduces mandatory ESG disclosures in phases, starting with large companies. While the timeline is still under consultation, the proposed structure is:
- Voluntary disclosure for most companies continues through 2025.
- From 2026 (tentative): Large KOSPI-listed companies (₩2 trillion+ in assets) are expected to begin mandatory ESG reporting.
- By 2030: Mandatory reporting to expand to all listed companies in Korea.
The regulatory direction is clear, even if final rules are pending—companies should prepare now rather than wait.
The role of KASB and the IFRS-based Standards
The KASB is leading the development of Korea’s sustainability disclosure standards, closely aligned with the IFRS Sustainability Disclosure Standards (SDS)— known as ISSB’s S1 and S2.
This means companies will need to report:
- Governance over sustainability-related risks and opportunities
- Climate-related financial disclosures (e.g. Scope 1 and 2 emissions)
- Business strategy integration, risk management, and performance metrics
This alignment also signals Korea’s intent to keep pace with global sustainability expectations, especially from investors and foreign regulators.
ESG Reporting is becoming core to business strategy
This is not just a compliance exercise. ESG disclosures will influence how companies are evaluated by investors, regulators, and global partners. Sustainability metrics may impact financing conditions, procurement decisions, and even customer trust.
For Korean companies—especially those exposed to global markets—getting ESG reporting right is not optional.
What companies should do now
- Stay updated on FSC and KASB regulatory developments
- Start preparing sustainability data aligned with upcoming standards
- Assess internal ESG systems, team readiness, and reporting gaps
- Engage expert partners to prepare for structured reporting and future assurance
South Korea’s ESG disclosure journey is already underway. With international alignment and local regulatory momentum, the time to prepare is now. Companies that start early will gain credibility, investor confidence, and a competitive edge.
