The Financial Services Commission (FSC) of Korea convened the 6th ESG Finance Promotion Group meeting on February 4, 2026, chaired by Vice Chairman Kwon Dae-young. The purpose was to discuss the institutionalization of sustainability (ESG) disclosure standards, a critical step for Korea’s sustainable economic growth. The meeting brought together government ministries, related agencies, industry representatives, investors, and experts to address key issues in ESG reporting. The FSC emphasized the need to resolve market uncertainties regarding the timing and scope of ESG disclosure requirements. The initiative aligns with Korea’s national greenhouse gas reduction targets and global trends in ESG reporting.
Participants included officials from the Ministry of Economy and Finance, Ministry of Trade, Industry and Energy, Ministry of Climate, Energy and Environment, and others, alongside major industry groups such as the Korea Chamber of Commerce and Industry, SK Hynix, POSCO Holdings, and investor representatives like the National Pension Service. Academic and expert voices also contributed, including professors and senior researchers. The meeting reviewed the final draft of Korea’s sustainability disclosure standards, based on the influential IFRS Foundation guidelines released in April 2024. There was broad consensus on the standards, but debate persisted over the inclusion of supply chain (Scope 3) greenhouse gas emissions due to measurement challenges.
The FSC proposed including Scope 3 emissions in the disclosure scope, but with an undefined implementation date and sufficient grace period, to be detailed in the roadmap. The roadmap draft draws on EU and Japan’s phased approaches, starting with large enterprises and gradually expanding mandatory disclosure. To minimize burdens, initial disclosures will be made via the Korea Exchange before transitioning to statutory reporting. The FSC aims to announce the final standards and roadmap at the 4th Productive Finance Transformation Meeting by the end of April 2024, followed by public consultation and stakeholder engagement.
Frequently asked questions include: What is the timeline for mandatory ESG disclosure in Korea? The FSC targets roadmap finalization by April 2024, with phased implementation starting with large corporations. Will Scope 3 emissions be required? Scope 3 is included in the scope, but the application timeline will allow for a sufficient grace period, especially for SMEs. How will companies be supported? The FSC will form a working group with related agencies to provide guidance and infrastructure support for disclosure compliance.
Korea’s Financial Services Commission is taking a pragmatic and inclusive approach to ESG disclosure reform. By leveraging international standards and engaging a broad range of stakeholders, the FSC is working to resolve market uncertainties and support companies through a phased implementation. The decision to include Scope 3 emissions, with a flexible timeline, balances transparency with the operational realities of businesses. The commitment to public consultation and infrastructure support will be crucial for successful adoption and long-term impact.