On July 8, 2026, the Korean government announced the Final Plan for the Institutionalization of Sustainability (ESG) Disclosure, substantially revising its previously proposed roadmap and adopting a more proactive and accelerated approach.

The most significant change is the elimination of the originally planned voluntary exchange disclosure phase. Instead, ESG disclosures will be introduced directly as mandatory statutory disclosures through the annual business report under the Financial Investment Services and Capital Markets Act (Capital Markets Act), thereby significantly enhancing the effectiveness and enforceability of the disclosure regime.

The mandatory ESG disclosure requirements will be implemented in phases based on the size of a company's consolidated assets, as follows:

• 2028 (FY2027): KOSPI-listed companies with consolidated assets of KRW 10 trillion or more (107 companies)
• 2029 (FY2028): KOSPI-listed companies with consolidated assets of KRW 5 trillion or more (157 companies)
• 2030 (FY2029, tentative): Expansion under consideration to include KOSPI-listed companies with consolidated assets of KRW 2 trillion or more (an additional 259 companies)

To reduce the initial compliance burden, small subsidiaries whose consolidated assets and revenue each account for less than 10% of the group total will be exempt from the disclosure requirements during the first year of mandatory reporting.

To facilitate a smooth transition to the new regime, the government has also introduced a series of significant relief measures. For the first three years following the implementation of the mandatory disclosure requirements, companies will be fully exempt from administrative sanctions under the Capital Markets Act for any disclosure deficiencies, including historical factual information such as greenhouse gas emissions. Furthermore, forward-looking information (such as climate scenario analyses) and third-party information will be granted permanent Safe Harbor protection.

To enhance the credibility of ESG disclosures, third-party assurance will become mandatory starting in 2030. However, disclosure of Scope 3 greenhouse gas emissions will be deferred for an additional three years, and emissions generated by general small and medium-sized suppliers will be excluded entirely from the calculation scope, thereby significantly reducing the practical compliance burden for both large corporations and their supply chain partners.

For more detailed information, please refer to the link below.