Consolidated assets 10trillion-KRW KOSPI-listed companies, 2028ESG disclosure becomes mandatory

The government and the Democratic Party of Korea have finalized a plan to make sustainability (ESG) disclosures mandatory for KOSPI-listed companies with total consolidated assets of 2028(2027fiscal year) or more and total consolidated assets of 10trillion won or more. The measure is drawing investor attention because it expands the companies subject to disclosure requirements.

The Financial Services Commission and relevant ministries announced the final plan after a consultation between the government and ruling party on 7 month 8. In 2028, the first year of mandatory disclosures, 10listed companies with total consolidated assets of 107trillion won or more will be covered.

The disclosures will be made directly through business reports under the Capital Markets Act, without going through the exchange disclosure stage. This rule signifies a change in the disclosure system.

The ruling party and the government 2029year (2028fiscal year) onward, proposed expanding the criteria to listed companies with assets of 5trillion won or more. The related document also states that the number of companies included in disclosures for 2029was 3,000or more.

Economic organizations raised concerns about insufficient implementation infrastructure and legal risks arising from the disclosure of forecast and estimated information. Companies formally requested that their legal liability and the state of preparations for their internal systems be taken into consideration.

The final plan consists of mandatory disclosure in business reports, an expanded scope of covered entities, and the timing of phased implementation. The relevant ministries are expected to prepare detailed guidelines and disclosure items in the future.