[2025 Audit] Min Byungdeok: "Incentives Needed... Korean-Style ESG Disclosure Framework Essential"

Proposal to Introduce Safe Harbor System
to Encourage ESG Disclosure with Incentives

During the National Assembly audit, a proposal was raised to introduce an incentive-based Safe Harbor system and establish a "Korean-style ESG disclosure framework."

Min Byungdeok, a lawmaker from the Democratic Party of Korea and a member of the National Assembly's Political Affairs Committee, suggested at the Financial Services Commission audit on October 20, "We should not approach ESG disclosure solely as a mandatory requirement," adding, "We need to introduce a Safe Harbor system that provides incentives for disclosure."

Lee Okwon, Chairman of the Financial Services Commission, is taking an oath at the National Assembly's Political Affairs Committee during the audit of the Financial Services Commission and others on October 20, 2025. Photo by Kim Hyunmin

The Safe Harbor system exempts companies from liability or disadvantages if they meet certain standards or conditions during the process of complying with laws or regulations.

Lawmaker Min pointed out, "In 2021, the Financial Services Commission announced a plan to gradually mandate ESG disclosure for listed companies with assets of 2 trillion won or more by 2030, as part of its 'Comprehensive Improvement Plan for Corporate Disclosure Systems.' However, in October 2023, the timeline was suddenly postponed to 'after 2026.'" He further emphasized, "We are now in an era where it is difficult to attract investment based solely on financial information. The global capital market already demands 'sustainability information,' and without ESG disclosure, it is nearly impossible to secure investment."

Additionally, Min stated, "I have conveyed this proposal to the United Nations Principles for Responsible Investment (UN PRI)," highlighting that "Korea's Safe Harbor-type ESG disclosure framework received positive feedback."

In response, Lee Okwon, Chairman of the Financial Services Commission, said, "We fully recognize the necessity of ESG disclosure," and added, "We will proceed in line with global trends and ensure we do not fall behind." Lawmaker Min urged, "We need to move beyond merely following the global schedule. Please, at the very least, establish a basic roadmap without hesitation." Chairman Lee replied, "We will continue to pay close attention to this matter."