Financial Supervisory Service Forms Task Force to Establish ESG Fund Disclosure Standards

The Financial Supervisory Service (FSS) announced on the 29th that it has formed a task force (TF) to establish disclosure standards related to ESG (Environmental, Social, and Governance) funds.

The TF includes seven asset management companies, the Korea Capital Market Institute, and the Korea Financial Investment Association. Previously, FSS Governor Lee Bok-hyun had announced plans to establish disclosure standards for ESG funds.

Through the TF, the FSS plans to identify disclosure regulatory trends in major overseas countries and establish disclosure standards regarding the disclosure subjects, investment strategies, management capabilities, and performance of ESG funds. The FSS intends to prepare a draft disclosure standard through TF operations in April and May, gather feedback, and implement follow-up measures such as revising disclosure forms within the first half of this year.

An FSS official explained, "Once the ESG fund disclosure standards are established, it is expected to resolve information asymmetry for investors, encourage responsible management, and help create an ESG investment environment that meets international standards."