KOSPI companies with consolidated assets of 10trillion won or more to be required to disclose ESG information from 2028.

The government and the Democratic Party of Korea have made a final decision to require KOSPI-listed companies with total consolidated assets of 2028 (fiscal year) to 2027trillion won or more to disclose sustainability (ESG) information through business reports. This decision directly changes the entities responsible for disclosure and the disclosure method.10Under the decision, the disclosure will be made through business reports under the Capital Markets Act.

In 2028 (fiscal year), the first year of mandatory disclosure, 2027KOSPI-listed companies with total consolidated assets of 10trillion won or more will be subject to the requirement. Subsequently, in 107 (fiscal year), 2029listed companies with assets of 2028trillion won or more, totaling 5companies, are scheduled to be added.157The additional companies will be subject to the requirement.

The initial roadmap draft set the threshold at consolidated assets of 30trillion won or more, but the final plan expanded the scope to 10trillion won. The disclosure will be made through business reports under the Capital Markets Act, without going through the exchange disclosure stage.

Business organizations raised concerns about insufficient implementation infrastructure and legal risks arising from the disclosure of predictive and estimated information. An official recommendation was made that specific guidelines should be established, taking into account corporate acceptance and implementation capabilities.

The Financial Services Commission and relevant ministries announced the final plan after consultations between the government and the ruling party. Detailed items, submission forms, and reporting timelines are expected to be finalized through future notifications.

Companies and investors should develop plans to prepare business reports and organize internal data based on the scope of companies covered and the disclosure items. They need to review the contents of future notifications and adjust their disclosure-response schedules accordingly.