ESG Disclosures to Become Mandatory in 2028...Starting with KOSPI-Listed Firms with Assets Over 30 Trillion Won

Institutionalization of ESG disclosures and plan to promote climate finance unveiled

Application of “burdensome for companies” Scope 3 deferred for three years

790 trillion won in climate finance to be injected to achieve the 2035 NDC target

The government will begin mandating ESG (environmental, social, and governance) disclosures in 2028, starting with KOSPI-listed companies whose total assets amount to at least 30 trillion won. However, the application of Scope 3 (emissions across the entire value chain), which poses a significant burden on companies, will be deferred for three years. The government also unveiled a plan to supply climate finance by injecting 790 trillion won in policy finance over 10 years to achieve the 2035 Nationally Determined Contribution (NDC) greenhouse gas reduction target.

Lee Eokwon, Chairman of the Financial Services Commission, presided over the 4th Productive Finance Great Transition meeting held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul on the morning of the 25th and mentioned tasks for the green transformation (Green Transformation, GX) of our economy and companies. Financial Services Commission

Lee Eogwon, Chairman of the Financial Services Commission, presided over the "4th Productive Finance Great Transition" meeting at the Korea Chamber of Commerce and Industry on the morning of the 25th and announced these measures on the "institutionalization of ESG disclosure" and the "plan to promote climate finance."

First, ESG disclosure will be introduced in 2028 for KOSPI-listed companies with consolidated total assets of at least 30 trillion won, and the scope will then be gradually expanded. Disclosure of Scope 3 emissions, which includes carbon emissions generated across the entire supply chain, will be exempted for three years and applied from 2031. Liability relief will also be allowed in the early stage of the system. The disclosure roadmap will be finalized in April after collecting public comments.

In parallel, the government will expand the scale of climate finance supplied by policy finance institutions. To support the achievement of the enhanced 2035 NDC, a total of 790 trillion won in policy finance will be injected over 10 years starting in 2026. It will also introduce a "Korea-style transition finance" framework to support the low-carbon transition of high-carbon industries such as steel, and it will further advance related information infrastructure so that the financial sector can better support voluntary climate action.

Chairman Lee stressed, "Green transformation is becoming a core pillar of 'productive finance' that drives sustainable growth, going beyond being a mere environmental issue," adding, "We will work to ensure that finance serves as a pivotal supporter of the green transformation of our companies and economy, leading carbon neutrality and the growth of new green industries."