South Korea is on track to join the list of global markets requiring ISSB-aligned climate disclosures. After initially delaying mandatory climate reporting in 2023, the Korean Financial Services Commission has now released a draft roadmap for sustainability disclosures. ESG Today reports:
“Under the new proposed roadmap, companies listed on Korea’s benchmark KOSPI Index with assets greater than KRW 30 trillion (USD$20.4 billion) will be required to begin sustainability reporting in line with the new standards in 2028, based on 2027 data. The roadmap envisions potentially expanding reporting requirements to KOSPI-listed companies with more than KRW 10 trillion in assets (USD$6.8 billion) one year later, with possible further expansion to smaller firms depending on readiness and international developments.”
Issuers subject to mandatory sustainability reporting in South Korea will be required to use Korea’s Standard No. 1 and Standard No. 2 to disclose climate and sustainability-related financial information. These are modeled after the ISSB’s IFRS 1 and IFRS 2 standards. Reporting is set to phase in, with initial reporting focusing exclusively on climate before expanding to broader sustainability disclosures in 2029. We’re now three years on from the initial publication of the ISSB’s standards, and more jurisdictions continue to move forward with ISSB-aligned reporting.
Our members can learn more about climate disclosure laws here.
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