Financial Services Commission Chairman: "We Will Prepare Institutional Improvement Plans to Comply with Mandatory Domestic ESG Disclosures"

▲Kim Joo-hyun, Chairman of the Financial Services Commission [Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Kim Ju-hyun, Chairman of the Financial Services Commission, stated on the 22nd, "We will prepare institutional improvement measures tailored to our circumstances in anticipation of the mandatory domestic ESG (Environmental, Social, and Governance) disclosure and the sustainable growth of our economy."

On this day, at the '20th Anniversary Commemorative Forum of the Korea Corporate Governance Service' held at the Korea Exchange Conference Hall in Yeouido, Seoul, Chairman Kim made these remarks in his congratulatory speech.

Chairman Kim said, "Despite the good intentions of ESG, there are indeed concerns," adding, "A representative issue is that the concept of ESG remains ambiguous."

He continued, "Different disclosure standards are being introduced by international organizations and countries, making it difficult for companies to know which standards to follow and for investors to compare corporate information," and added, "There are significant discrepancies in evaluations, and a lack of transparency in the process raises concerns about reliability."

He stated, "Nevertheless, ESG is an issue that must be considered for the sustainable growth of the global economy."

He further added, "Amid these concerns and the trend of strengthening ESG in major advanced countries, I hope that the Korea ESG Standards Institute will demonstrate 'intellectual leadership' to lead ESG discussions and grow as an institution supporting the ESG capabilities of domestic companies."

Regarding the concretization of the ESG disclosure system, Chairman Kim mentioned, "We plan to prepare institutional improvement measures suited to our circumstances, considering not only global discussion trends but also the characteristics of our industrial structure and the realistic burdens on companies."

He also said, "To enhance the transparency and reliability of ESG evaluations, we will establish voluntary standards regarding the appropriateness of ESG evaluation models by evaluation agencies, necessary information disclosure in the market, and prevention of conflicts of interest."

He added, "Through a joint government effort, we will strengthen education, consulting, and financial support from policy financial institutions for small and medium-sized enterprises and mid-sized companies lacking ESG capabilities."

Meanwhile, this event was held to commemorate the 20th anniversary of the Korea Corporate Governance Service. At the event, the Korea Corporate Governance Service announced its new name, 'Korea ESG Standards Institute,' and unveiled a new CI. The event was attended by Sohn Byung-doo, Chairman of the Korea Exchange, and related organizations.

This content was produced with the assistance of AI translation services.