Back in March, I wrote about South Korea’s plans for ISSB-aligned reporting. Initial drafts indicated that the requirements would only apply to companies with 30 trillion won in assets. Now, those plans have changed. The threshold advanced by the South Korean government is reduced to one-third the size. Korean publication JoongAng Daily writes:
“Korean companies with 10 trillion won ($6.6 billion) or more in consolidated assets will be required to disclose information on their environmental, social and governance (ESG) performance and risks starting in 2028…
Under the plan, Kospi-listed companies with 10 trillion won or more in consolidated assets will be required to publish ESG reports starting in 2028. The requirement will be expanded to companies with assets of 5 trillion won or more in 2029.”
This is a little surprising. We’re used to seeing scoping requirements increase, like those in the EU under the CSRD. South Korea is taking a more aggressive stance in expanding rather than shrinking the scope of their disclosures. The article also indicates that the government is considering shrinking the threshold requirement to as little as 2 trillion won in 2030. Under the new scoping requirements, only 291 companies are expected to issue reports in 2028. However, that number will potentially grow to 3,171 in 2029 when the scope is further reduced.
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