Seungbeom Go "ESG Disclosure Expansion... Advancing Systems in Line with Global Standards"

[Asia Economy Reporter Ji Yeon-jin] Ko Seung-beom, Chairman of the Financial Services Commission, emphasized that "it is of utmost importance to advance South Korea's ESG (Environmental, Social, and Governance) disclosure system to align with global standards."

Chairman Ko attended a discussion forum on strategies to expand ESG disclosures based on global standards held on the afternoon of the 7th at the Fairmont Hotel in Yeouido, Seoul, and stated, "With the establishment of the ISSB and the announcement of international standardization, ESG disclosures are expected to spread further worldwide."

At last month's United Nations Climate Change Conference (COP26), attended by 197 countries, it was decided to establish the International Sustainability Standards Board (ISSB) within the International Financial Reporting Standards (IFRS) Foundation and to develop a single international sustainability disclosure standard. Accordingly, the disclosure standards to be set by the ISSB are expected to become international standards, with ESG disclosures emerging as a core pillar.

Chairman Ko said, "While continuously supplementing and improving to meet global requirements such as the international standards presented by the ISSB, our economic conditions and industrial characteristics should be appropriately reflected," adding, "We will actively pursue concrete efforts to effectively represent our voice in the international community, such as recommending Korean personnel to the ISSB and providing government financial support."

He also stated, "The ESG disclosure system needs to be improved for more efficient operation," and added, "As various ESG activities are emphasized, there are many voices that this places a considerable burden on the most important stakeholders, the companies themselves, so we will make every effort to avoid overlapping disclosure burdens."

He continued, "Voluntary and active ESG participation by market participants, including companies, is important," and added, "When ESG information and data accumulate with the participation of various stakeholders such as companies, financial institutions, and investors, market trust in ESG disclosures will increase."