South Korea’s Financial Services Commission (FSC) announced plans to introduce guidelines for public disclosures on investments aligned with environmental, social, and governance (ESG) objectives by March or April.
Vice Chairman Kim So-young revealed that these standards, slated for implementation in 2026 or later, will undergo further refinement.
Acknowledging delays in ESG discussions in major economies like the United States, Kim emphasized a cautious approach, aiming for local ESG disclosure standards post-2026. The exact timeline will be determined through consultations with relevant stakeholders to ensure a smooth transition.
Kim assured that initial non-compliance sanctions would be minimal to facilitate businesses’ gradual adjustment to the new system. ESG disclosures are pivotal for firms to report their performance on various sustainability fronts, aligning with global standards while considering local economic conditions and business realities.