Financial Services Commission "Prepare ESG Disclosure System Roadmap and Improvement Measures for Retirement Pension Operation Regulations"

On the 12th, the Financial Services Commission announced at the '3rd Relay Seminar for Strengthening the Global Competitiveness of the Financial Investment Industry' that it will work on improving the domestic ESG disclosure system and retirement pension operation regulations.

The seminar held at the Korea Exchange was the third event in a series of relay seminars aimed at enhancing the global competitiveness of the financial investment industry. It was organized to actively discuss institutional improvement measures related to ESG disclosure and retirement pensions amid the trends of sustainable growth and population aging.

Kim So-young, Vice Chairman of the Financial Services Commission, who attended the seminar, said, “ESG disclosure and retirement pensions are topics that we must address to live in the new normal era of a sustainable economy,” adding, “We plan to promote related institutional improvements within the third quarter of this year.”

Regarding ESG disclosure, the Commission plans to announce the 'Domestic ESG Disclosure System Roadmap' in the third quarter of this year in connection with the phased mandatory ESG disclosure to be introduced from 2025. The roadmap will include details on ?mandatory ESG disclosure target companies ?domestic ESG disclosure standards ?third-party verification systems.

For the obligation and target companies of ESG disclosure, the plan is to start with KOSPI-listed companies with assets of 2 trillion won or more in 2025, expand to companies with assets of 1 trillion won in 2027, 500 billion won in 2029, and eventually cover all KOSPI-listed companies by 2030. Regarding ESG disclosure standards, the initial disclosure system will focus on establishing standards centered on the climate sector, where international consensus has been formed.

Regarding retirement pensions, improvements to retirement pension operation regulations will be pursued in the first half of this year. Vice Chairman Kim So-young explained, “We are reviewing measures to expand the range of investable products when operating retirement pensions and to ensure that accumulated and operated retirement pensions can be withdrawn in the form of pensions, thereby enhancing the function of retirement pensions as a source of income security in old age.”