South Korea is preparing to introduce mandatory sustainability reporting requirements, marking a major step toward strengthening ESG transparency and aligning corporate disclosures with global standards. The roadmap, announced by the country’s Financial Services Commission (FSC), proposes phased implementation beginning in 2028.

Under the proposed framework, companies listed on Korea’s benchmark KOSPI index with assets exceeding KRW 30 trillion (approximately $20 billion) will be required to publish sustainability disclosures starting in 2028, based on 2027 reporting data. The mandate may expand to additional KOSPI-listed companies with assets above KRW 10 trillion in the following year, with further extensions to smaller firms depending on market readiness and international regulatory developments.

The disclosure rules will follow Korea’s newly finalized Sustainability Reporting Standards, which are closely aligned with the International Sustainability Standards Board (ISSB) frameworks. The standards include general sustainability disclosure requirements and climate-related reporting, corresponding to IFRS S1 and IFRS S2 guidelines.

The roadmap proposes a phased transition to allow companies time to prepare. While climate-related disclosures will initially be mandatory, reporting on broader sustainability risks may remain optional during the early stages. Notably, mandatory reporting of Scope 3 value-chain emissions is expected to begin after a three-year transition period to allow companies to develop the necessary reporting infrastructure.

In the initial phase, third-party assurance of sustainability disclosures will remain voluntary, with regulators considering mandatory assurance in the future as global reporting practices evolve. Enforcement is also expected to start with guidance and support rather than strict sanctions.

The FSC has opened a public consultation on the roadmap and plans to finalize the framework in April 2026. If implemented as proposed, the policy will significantly enhance ESG reporting transparency in Korea and strengthen alignment with international sustainability disclosure standards.